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.
Probi AB's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.93%.
As of Mar. 2024, Probi AB has a Sloan Ratio of -2.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Probi AB Sloan Ratio % Historical Data
The historical data trend for Probi AB'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 Probi AB's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Probi AB'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.
Probi AB's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Probi AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Probi AB's Sloan Ratio % falls into.
Probi AB 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.
Probi AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Probi AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -6.26 (Jun. 2023 ) + 6.395 (Sep. 2023 ) + -2.59 (Dec. 2023 ) + 1.853 (Mar. 2024 ) = kr-0.6 Mil.
Probi AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 8.959 (Jun. 2023 ) + 16.947 (Sep. 2023 ) + 46.856 (Dec. 2023 ) + 18.884 (Mar. 2024 ) = kr91.6 Mil.
Probi AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -9.171 (Jun. 2023 ) + -13.132 (Sep. 2023 ) + -17.531 (Dec. 2023 ) + -7.451 (Mar. 2024 ) = kr-47.3 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.
Probi AB (OSTO:PROB) 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, Probi AB has a Sloan Ratio of -2.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Probi AB Sloan Ratio % Related Terms
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Probi AB is engaged in probiotic research and development, manufacturing and sales of effective and well-documented probiotics. The company's research relates to living microorganisms with scientific health benefits. The main fields of research are gut health, immune system and nutrient absorption, iron absorption, bone health and stress and recovery. It operates in Consumer Healthcare (CHC) and Functional Food (FF). The company operates in United States, Americas, excluding the United States , Sweden, EMEA, excluding Sweden, and APAC. The company's business is divided into three operating segments. These segments are based on a geographical division and consist of the regions Americas (North and South America), EMEA (Europe, Middle East and Africa) and APAC (Asia and the Pacific).
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