Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
CO2 Gro's Sloan Ratio for the quarter that ended in Sep. 2023 was 0.00%.
Warning Sign:
When sloan ratio (-30.62)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2023, CO2 Gro has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
CO2 Gro Sloan Ratio % Historical Data
The historical data trend for CO2 Gro's Sloan Ratio % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Agricultural Inputs subindustry, CO2 Gro's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
CO2 Gro's Sloan Ratio % Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, CO2 Gro's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CO2 Gro's Sloan Ratio % falls into.
CO2 Gro Sloan Ratio % Calculation
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
CO2 Gro's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
CO2 Gro's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -0.234 (Sep. 2022 ) + -0.552 (Dec. 2022 ) + -0.295 (Mar. 2023 ) + -0.131 (Sep. 2023 ) = C$-1.21 Mil.
CO2 Gro's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -0.343 (Sep. 2022 ) + -0.188 (Dec. 2022 ) + -0.231 (Mar. 2023 ) + 0 (Sep. 2023 ) = C$-0.76 Mil.
CO2 Gro's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -0.011 (Sep. 2022 ) + -0.006 (Dec. 2022 ) + -0.008 (Mar. 2023 ) + 0 (Sep. 2023 ) = C$-0.03 Mil.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
CO2 Gro (TSXV:GROW) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Sep. 2023, CO2 Gro has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
CO2 Gro Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of CO2 Gro's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
CO2 GRO Inc is engaged in commercializing its patent-licensed CO2 gas infusion technology and its patent-pending US PTO CO2 Delivery Solutions system, both of which form the company's saturated CO2 solutions plant platform. Saturated CO2 solution when misted onto plants provides growers that cannot gas with CO2 the opportunity to increase plant yields. The company's sole focus is working with its plant growers and agri-industrial partners in proving and adopting its CO2 technologies for specific growers' plant yield needs.
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