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Medical Marijuana (Medical Marijuana) Sloan Ratio % : -43.05% (As of Dec. 2017)


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What is Medical Marijuana Sloan Ratio %?

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.

Medical Marijuana's Sloan Ratio for the quarter that ended in Dec. 2017 was -43.05%.

As of Dec. 2017, Medical Marijuana has a Sloan Ratio of -43.05%, indicating earnings are more likely to be made up of accruals.


Medical Marijuana Sloan Ratio % Historical Data

The historical data trend for Medical Marijuana'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.

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Medical Marijuana Sloan Ratio % Chart

Medical Marijuana Annual Data
Trend Dec09 Dec10 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Sloan Ratio %
Get a 7-Day Free Trial 70.83 65.25 26.86 45.20 -43.05

Medical Marijuana Semi-Annual Data
Dec09 Dec10 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Sloan Ratio % Get a 7-Day Free Trial 70.83 65.25 26.86 45.20 -43.05

Competitive Comparison of Medical Marijuana's Sloan Ratio %

For the Drug Manufacturers - Specialty & Generic subindustry, Medical Marijuana'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.


Medical Marijuana's Sloan Ratio % Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Medical Marijuana's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Medical Marijuana's Sloan Ratio % falls into.



Medical Marijuana 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.

Medical Marijuana's Sloan Ratio for the fiscal year that ended in Dec. 2017 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2017 )-Cash Flow from Operations (A: Dec. 2017 )
-Cash Flow from Investing (A: Dec. 2017 ))/Total Assets (A: Dec. 2017 )
=(-148.105--155.081
-125.295)/274.838
=-43.05%

Medical Marijuana's Sloan Ratio for the quarter that ended in Dec. 2017 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2017 )
=(-148.105--155.081
-125.295)/274.838
=-43.05%

For company reported annually, GuruFocus uses latest annual data as the TTM data. Medical Marijuana's Net Income for the trailing twelve months (TTM) ended in Dec. 2017 was $-148.11 Mil.
Medical Marijuana's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2017 was $-155.08 Mil.
Medical Marijuana's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2017 was $125.30 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.


Medical Marijuana  (OTCPK:MJNA) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2017, Medical Marijuana has a Sloan Ratio of -43.05%, indicating earnings are more likely to be made up of accruals.


Medical Marijuana Sloan Ratio % Related Terms

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Medical Marijuana (Medical Marijuana) Business Description

Traded in Other Exchanges
N/A
Address
2384 La Mirada Drive, Vista, CA, USA, 92081
Medical Marijuana Inc is engaged in the development, sale, and distribution of hemp oil that contains naturally occurring cannabinoids, including cannabidiol and other products containing CBD-rich hemp oil. The company's products are used by pharmaceutical, nutraceutical, and cosmeceutical industries. Some of its products are CBD Capsules, CBD Tinctures, Vaporizers, and Hemp foods among others.