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.
Addus HomeCare's Sloan Ratio for the quarter that ended in Dec. 2023 was 6.98%.
As of Dec. 2023, Addus HomeCare has a Sloan Ratio of 6.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Addus HomeCare Sloan Ratio % Historical Data
The historical data trend for Addus HomeCare'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 Addus HomeCare's Sloan Ratio %
For the Medical Care Facilities subindustry, Addus HomeCare'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.
Addus HomeCare's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Addus HomeCare's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Addus HomeCare's Sloan Ratio % falls into.
Addus HomeCare 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.
Addus HomeCare's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Addus HomeCare's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 11.838 (Mar. 2023 ) + 13.708 (Jun. 2023 ) + 14.44 (Sep. 2023 ) + 17.953 (Dec. 2023 ) = €57.9 Mil.
Addus HomeCare's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 17.558 (Mar. 2023 ) + 38.41 (Jun. 2023 ) + 20.413 (Sep. 2023 ) + 27.555 (Dec. 2023 ) = €103.9 Mil.
Addus HomeCare's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.627 (Mar. 2023 ) + -0.894 (Jun. 2023 ) + -104.216 (Sep. 2023 ) + -4.862 (Dec. 2023 ) = €-111.6 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.
Addus HomeCare (FRA:A41) 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, Addus HomeCare has a Sloan Ratio of 6.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Addus HomeCare Sloan Ratio % Related Terms
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Addus HomeCare Corp is engaged in the provision of in-home personal care services. It operates through the following segments: Personal care segment, which is a key revenue driver, provides non-medical assistance with activities of daily living, primarily to persons who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. The Hospice segment provides physical, emotional and spiritual care for people who are terminally ill and their families. Its Home health segment provides services that are primarily medical in nature to those individuals who may require assistance during an illness or after surgery.
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