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.
Blau Farmaceutica's Sloan Ratio for the quarter that ended in Dec. 2023 was 12.64%.
As of Dec. 2023, Blau Farmaceutica has a Sloan Ratio of 12.64%, indicating there is a warning stage of accrual build up.
Blau Farmaceutica Sloan Ratio % Historical Data
The historical data trend for Blau Farmaceutica'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 Blau Farmaceutica's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Blau Farmaceutica'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.
Blau Farmaceutica's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Blau Farmaceutica's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Blau Farmaceutica's Sloan Ratio % falls into.
Blau Farmaceutica 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.
Blau Farmaceutica's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Blau Farmaceutica's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 51.95 (Mar. 2023 ) + 70.788 (Jun. 2023 ) + 99.396 (Sep. 2023 ) + 27.675 (Dec. 2023 ) = R$250 Mil.
Blau Farmaceutica's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 34.73 (Mar. 2023 ) + 126.778 (Jun. 2023 ) + 61.078 (Sep. 2023 ) + -2.025 (Dec. 2023 ) = R$221 Mil.
Blau Farmaceutica's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -5.378 (Mar. 2023 ) + 67.678 (Jun. 2023 ) + -462.097 (Sep. 2023 ) + 42.988 (Dec. 2023 ) = R$-357 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.
Blau Farmaceutica (BSP:BLAU3) 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. 2023, Blau Farmaceutica has a Sloan Ratio of 12.64%, indicating there is a warning stage of accrual build up.
Blau Farmaceutica Sloan Ratio % Related Terms
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Blau Farmaceutica (BSP:BLAU3) Business Description
Blau Farmaceutica SA is engaged in the manufacturing, development and commercialization of complex private-label drugs for the institutional segment. The Company's business activities cover institutional and retail segments, and are divided into four units: 1) Biologicals are a heterogeneous class of products that can be produced using raw materials from biological materials and biotechnological procedures. 2) Oncology line is made up of oral and injectable drugs intended for treating cancer, which encompasses a number of therapeutic classes. 3) Specialties line is made up of products that are used in the hospital's daily routine, in the specialized treatments for infectious diseases and special treatments. 4) Others consist of prescription and non-prescription over-the-counter drugs.
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