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.
1933 Industries's Sloan Ratio for the quarter that ended in Apr. 2024 was -54.10%.
Warning Sign:
When sloan ratio (-78.63)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Apr. 2024, 1933 Industries has a Sloan Ratio of -54.10%, indicating earnings are more likely to be made up of accruals.
1933 Industries Sloan Ratio % Historical Data
The historical data trend for 1933 Industries'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 1933 Industries's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, 1933 Industries'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.
1933 Industries's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, 1933 Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where 1933 Industries's Sloan Ratio % falls into.
1933 Industries 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.
1933 Industries's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as
1933 Industries's Net Income for the trailing twelve months (TTM) ended in Apr. 2024 was -8.774 (Jul. 2023 ) + -0.363 (Oct. 2023 ) + -0.741 (Jan. 2024 ) + 0.017 (Apr. 2024 ) = C$-9.86 Mil.
1933 Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2024 was 0.369 (Jul. 2023 ) + 0.062 (Oct. 2023 ) + 0.246 (Jan. 2024 ) + 0.658 (Apr. 2024 ) = C$1.34 Mil.
1933 Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2024 was -0.5 (Jul. 2023 ) + -0.322 (Oct. 2023 ) + -0.079 (Jan. 2024 ) + -0.344 (Apr. 2024 ) = C$-1.25 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.
1933 Industries (XCNQ:TGIF) 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 Apr. 2024, 1933 Industries has a Sloan Ratio of -54.10%, indicating earnings are more likely to be made up of accruals.
1933 Industries Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of 1933 Industries's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
1933 Industries Inc is a vertically integrated cannabis company. The company is focused on the cultivation and manufacturing of cannabis consumer-branded goods. The Company operates in three segments, referred to as AMA, Infused MFG, and Corporate. AMA is focused on the cultivation and sale of medical and adult-use cannabis products, and Infused MFG is focused on the manufacturing of hemp-derived CBD products. The majority of revenue is generated from the AMA segment. The operations of AMA and Infused MFG are located in the United States. All revenues are earned in the United States.
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