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.
Teladoc Health's Sloan Ratio for the quarter that ended in Dec. 2023 was -9.43%.
As of Dec. 2023, Teladoc Health has a Sloan Ratio of -9.43%, indicating the company is in the safe zone and there is no funny business with accruals.
Teladoc Health Sloan Ratio % Historical Data
The historical data trend for Teladoc Health'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 Teladoc Health's Sloan Ratio %
For the Health Information Services subindustry, Teladoc Health'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.
Teladoc Health's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Teladoc Health's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Teladoc Health's Sloan Ratio % falls into.
Teladoc Health 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.
Teladoc Health's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Teladoc Health's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -69.228 (Mar. 2023 ) + -65.177 (Jun. 2023 ) + -57.073 (Sep. 2023 ) + -28.89 (Dec. 2023 ) = $-220 Mil.
Teladoc Health's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 13.156 (Mar. 2023 ) + 101.182 (Jun. 2023 ) + 105.601 (Sep. 2023 ) + 130.082 (Dec. 2023 ) = $350 Mil.
Teladoc Health's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -45.624 (Mar. 2023 ) + -36.57 (Jun. 2023 ) + -37.647 (Sep. 2023 ) + -36.506 (Dec. 2023 ) = $-156 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.
Teladoc Health (NYSE:TDOC) 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, Teladoc Health has a Sloan Ratio of -9.43%, indicating the company is in the safe zone and there is no funny business with accruals.
Teladoc Health Sloan Ratio % Related Terms
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Teladoc Health (Teladoc Health) Business Description
Teladoc Health is a virtual health provider with a telehealth platform delivering 24-hour, on-demand healthcare via mobile devices, the internet, video, and phone. It also offers remote patient monitoring programs for chronic care management. Its platform connects members with a network of physicians and behavioral health professionals. Most of the company's revenue is generated from access fees on a subscription basis (per member, per month). The balance comes from visit fees and equipment rental and sales to hospital systems. Since inception, Teladoc has primarily partnered with employers, health plans, and health systems to offer network access to their members; it has also started to market directly to consumers while expanding its service portfolio.
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