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.
Wellness Center USA's Sloan Ratio for the quarter that ended in Jun. 2022 was 0.00%.
As of Jun. 2022, Wellness Center USA has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Wellness Center USA (OTCPK:WCUI) 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 Jun. 2022, Wellness Center USA has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Wellness Center USA Sloan Ratio % Related Terms
Wellness Center USA Sloan Ratio % Historical Data
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The historical data trend for Wellness Center USA'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.
WCUI vs NUWE, MHTX, ADMT: Sloan Ratio % Comparison
For the Medical Devices subindustry, Wellness Center USA'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.
Wellness Center USA Sloan Ratio % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Wellness Center USA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Wellness Center USA's Sloan Ratio % falls into.
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.
Wellness Center USA's Sloan Ratio for the fiscal year that ended in Sep. 2021 is calculated as
Wellness Center USA's Net Income for the trailing twelve months (TTM) ended in Jun. 2022 was -0.259 (Sep. 2021 ) + -0.132 (Dec. 2021 ) + -0.178 (Mar. 2022 ) + -0.622 (Jun. 2022 ) = $-1.19 Mil.
Wellness Center USA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2022 was -0.165 (Sep. 2021 ) + -0.068 (Dec. 2021 ) + -0.37 (Mar. 2022 ) + -0.297 (Jun. 2022 ) = $-0.90 Mil.
Wellness Center USA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2022 was 0 (Sep. 2021 ) + 0 (Dec. 2021 ) + 0 (Mar. 2022 ) + 0 (Jun. 2022 ) = $0.00 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.
Wellness Center USA (WCUI) has a Sloan Ratio % of 0.00% as of Jun. 2022. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Wellness Center USA and its competitors.
Is Wellness Center USA's Sloan Ratio % too high?
Wellness Center USA's current Sloan Ratio % is 0.00%.
How does Wellness Center USA's Sloan Ratio % compare to NUWE and MHTX?
Wellness Center USA's Sloan Ratio % of 0.00% can be compared against companies in the Medical Devices & Instruments industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Medical Devices & Instruments company?
A good Sloan Ratio % depends on the Medical Devices & Instruments industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Wellness Center USA and its competitors. Wellness Center USA's current Sloan Ratio % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wellness Center USA stock overvalued right now?
Wellness Center USA (WCUI) has a current Sloan Ratio % of 0.00%. The current Sloan Ratio % is 0.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Wellness Center USA (WCUI), the current Sloan Ratio % is 0.00% as of Jun. 2022. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Wellness Center USA Inc is a United States-based company that is engaged in online sports and nutrition supplements marketing and distribution. The company operates through two segments namely the Distribution of targeted ultraviolet (UV) phototherapy devices for dermatology and sanitation purposes and Authentication and encryption products and services. It mainly designs, develops, and markets a targeted ultraviolet phototherapy device; provides diagnostic, surgical, treatment, research, and setting standards and protocols; and provides clients with premiere authentication technology for the protection of products and brands from illicit counterfeiting and diversion activities.
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