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.
Ebos Group's Sloan Ratio for the quarter that ended in Dec. 2023 was 4.33%.
As of Dec. 2023, Ebos Group has a Sloan Ratio of 4.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Ebos Group Sloan Ratio % Historical Data
The historical data trend for Ebos Group'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 Ebos Group's Sloan Ratio %
For the Medical Distribution subindustry, Ebos Group'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.
Ebos Group's Sloan Ratio % Distribution in the Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Ebos Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ebos Group's Sloan Ratio % falls into.
Ebos Group 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.
Ebos Group's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Ebos Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 134.135 (Jun. 2023 ) + 146.63 (Dec. 2023 ) = NZ$281 Mil.
Ebos Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 253.398 (Jun. 2023 ) + 113.56 (Dec. 2023 ) = NZ$367 Mil.
Ebos Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -87.497 (Jun. 2023 ) + -322.234 (Dec. 2023 ) = NZ$-410 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.
Ebos Group (NZSE:EBO) 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, Ebos Group has a Sloan Ratio of 4.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Ebos Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Ebos Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ebos is the largest pharmaceutical wholesaler and distributor across Australia and New Zealand. It services community pharmacies and hospitals, which contribute around 60% and 30% of revenue respectively. Drug pricing and wholesale margins for PBS medicine are governed by the Australian government's Pharmaceutical Benefits Scheme, or PBS. Wholesale gross margins are capped at 7% for community pharmacy and 10% for hospitals, and ongoing price reform typically results in low single digit revenue growth. Aside from pharma distribution, Ebos operates an animal health product wholesale, manufacturing and retail business, as well as undertaking third party logistics services. These segments are smaller contributors to group revenue but due to the unregulated nature are higher-margin operations.
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