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.
As of Sep. 2024, WELL Health Technologies has a Sloan Ratio of -1.51%, indicating the company is in the safe zone and there is no funny business with accruals.
WELL Health Technologies Sloan Ratio % Historical Data
* 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 WELL Health Technologies's Sloan Ratio %
For the Medical Care Facilities subindustry, WELL Health Technologies'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.
WELL Health Technologies's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, WELL Health Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where WELL Health Technologies's Sloan Ratio % falls into.
WELL Health Technologies 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.
WELL Health Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
WELL Health Technologies's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 20.731 (Dec. 2023 ) + 11.146 (Mar. 2024 ) + 81.516 (Jun. 2024 ) + -59.938 (Sep. 2024 ) = $53.5 Mil.
WELL Health Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 10.952 (Dec. 2023 ) + 14.084 (Mar. 2024 ) + 25.658 (Jun. 2024 ) + 42.731 (Sep. 2024 ) = $93.4 Mil.
WELL Health Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -9.627 (Dec. 2023 ) + -4.292 (Mar. 2024 ) + -4.375 (Jun. 2024 ) + -3.901 (Sep. 2024 ) = $-22.2 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.
WELL Health Technologies (OTCPK:WHTCF) 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. 2024, WELL Health Technologies has a Sloan Ratio of -1.51%, indicating the company is in the safe zone and there is no funny business with accruals.
WELL Health Technologies Sloan Ratio % Related Terms
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WELL Health Technologies Corp is a practitioner-focused digital healthcare company. It has seven reportable segments that are grouped into three key business units: Canadian Patient Services that includes Primary and Specialized MyHealth. WELL Health USA Patient Services includes Primary Circle Medica, Primary WISP, Specialized CRH Medical, and Specialized Provider Staffing and SaaS and Technology Services. It generates the majority of its revenue from Well Health USA Patient and Provider Services unit.
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