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.
Gnomestar Craft's Sloan Ratio for the quarter that ended in Dec. 2021 was -50.34%.
As of Dec. 2021, Gnomestar Craft has a Sloan Ratio of -50.34%, indicating earnings are more likely to be made up of accruals.
Gnomestar Craft Sloan Ratio % Historical Data
The historical data trend for Gnomestar Craft'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.
Competitive Comparison of Gnomestar Craft's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Gnomestar Craft'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.
Gnomestar Craft's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Gnomestar Craft's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Gnomestar Craft's Sloan Ratio % falls into.
Gnomestar Craft 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.
Gnomestar Craft's Sloan Ratio for the fiscal year that ended in Mar. 2021 is calculated as
Gnomestar Craft's Net Income for the trailing twelve months (TTM) ended in Dec. 2021 was -0.177 (Mar. 2021 ) + -0.029 (Jun. 2021 ) + -0.174 (Sep. 2021 ) + -0.09 (Dec. 2021 ) = $-0.47 Mil.
Gnomestar Craft's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2021 was 0.018 (Mar. 2021 ) + -0.052 (Jun. 2021 ) + -0.002 (Sep. 2021 ) + 0.066 (Dec. 2021 ) = $0.03 Mil.
Gnomestar Craft's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2021 was -0.013 (Mar. 2021 ) + -0.01 (Jun. 2021 ) + 0.009 (Sep. 2021 ) + -0.046 (Dec. 2021 ) = $-0.06 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.
Gnomestar Craft (OTCPK:VDQSF) 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 Dec. 2021, Gnomestar Craft has a Sloan Ratio of -50.34%, indicating earnings are more likely to be made up of accruals.
Gnomestar Craft Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Gnomestar Craft's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Gnomestar Craft (Gnomestar Craft) Business Description
Gnomestar Craft Inc, formerly Vodis Pharmaceuticals Inc is engaged in the manufacturing of craft cannabis. The company's facility is situated in Delta, British Columbia, Canada. The business operates in one segment being the marijuana industry, and all assets are located in Canada.The firm sells certain cannabis products for medical and recreational use to certain companies in Canada who are licensed for cultivation, processing and sell dried cannabis products.
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