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.
Embla Medical hf's Sloan Ratio for the quarter that ended in Mar. 2024 was 6.29%.
As of Mar. 2024, Embla Medical hf has a Sloan Ratio of 6.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Embla Medical hf Sloan Ratio % Historical Data
The historical data trend for Embla Medical hf'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 Embla Medical hf's Sloan Ratio %
For the Medical Devices subindustry, Embla Medical hf'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.
Embla Medical hf's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Embla Medical hf's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Embla Medical hf's Sloan Ratio % falls into.
Embla Medical hf 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.
Embla Medical hf's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Embla Medical hf's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 15.782 (Jun. 2023 ) + 13.894 (Sep. 2023 ) + 18.994 (Dec. 2023 ) + 8.26 (Mar. 2024 ) = $56.9 Mil.
Embla Medical hf's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 24.962 (Jun. 2023 ) + 27.053 (Sep. 2023 ) + 36.777 (Dec. 2023 ) + 4.038 (Mar. 2024 ) = $92.8 Mil.
Embla Medical hf's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -16.293 (Jun. 2023 ) + -10.126 (Sep. 2023 ) + -20.495 (Dec. 2023 ) + -86.126 (Mar. 2024 ) = $-133.0 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.
Embla Medical hf (OTCPK:OSSUY) 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 Mar. 2024, Embla Medical hf has a Sloan Ratio of 6.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Embla Medical hf Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Embla Medical hf's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Embla Medical hf (Embla Medical hf) Business Description
Ossur hf is engaged in the design, development, manufacture, and sale of prosthetics and bracing & support products. The company's products improve mobility through technologies in the field of braces, supports, prosthetic limbs, and compression therapy. Its segments are the Bracing & Supports and Prosthetics segment. The bracing & support products are used to support joints and other body parts for therapeutic and preventative purposes. The Prosthetics segment includes artificial limbs and related products for individuals born without limbs. Its geographical segments are the Americas; Europe, the Middle East & Africa (EMEA); and the Americas & Asia-Pacific (APAC), of which the Americas generate nearly half of the company's revenue.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
OSSUY has been successfully added to your 