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.
Fortune Valley Treasures's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
Warning Sign:
When sloan ratio (-61.82)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Fortune Valley Treasures has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Fortune Valley Treasures Sloan Ratio % Historical Data
The historical data trend for Fortune Valley Treasures'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 Fortune Valley Treasures's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Fortune Valley Treasures'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.
Fortune Valley Treasures's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Fortune Valley Treasures's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Fortune Valley Treasures's Sloan Ratio % falls into.
Fortune Valley Treasures 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.
Fortune Valley Treasures's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Fortune Valley Treasures's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -0.089 (Mar. 2023 ) + -0.387 (Jun. 2023 ) + -1.109 (Sep. 2023 ) + -2.462 (Dec. 2023 ) = $-4.05 Mil.
Fortune Valley Treasures's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.175 (Mar. 2023 ) + 0.089 (Jun. 2023 ) + -0.187 (Sep. 2023 ) + 0.094 (Dec. 2023 ) = $-0.18 Mil.
Fortune Valley Treasures's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.001 (Mar. 2023 ) + -0.005 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0.001 (Dec. 2023 ) = $-0.01 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.
Fortune Valley Treasures (OTCPK:FVTI) 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, Fortune Valley Treasures has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Fortune Valley Treasures Sloan Ratio % Related Terms
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Fortune Valley Treasures (Fortune Valley Treasures) Business Description
Fortune Valley Treasures Inc is engaged in operations of wholesale distribution and retail sales of food and beverage products in the People's Republic of China. The company is into acquiring businesses that are in the food, beverage, and alcohol industries. Its products include a variety of wines, such as dry red wine, dry white wine, rose wine, and sweet wine, and other products. Its products are sold to retailers, such as wine shops, convenience stores, and supermarkets.
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