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.
Tabula Rasa HealthCare's Sloan Ratio for the quarter that ended in Jun. 2023 was -54.74%.
Warning Sign:
When sloan ratio (-64.08)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2023, Tabula Rasa HealthCare has a Sloan Ratio of -54.74%, indicating earnings are more likely to be made up of accruals.
Tabula Rasa HealthCare Sloan Ratio % Historical Data
* 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 Tabula Rasa HealthCare's Sloan Ratio %
For the Health Information Services subindustry, Tabula Rasa HealthCare'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.
Tabula Rasa HealthCare's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Tabula Rasa HealthCare's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tabula Rasa HealthCare's Sloan Ratio % falls into.
Tabula Rasa HealthCare 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.
Tabula Rasa HealthCare's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Tabula Rasa HealthCare's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was -40.065 (Sep. 2022 ) + -29.642 (Dec. 2022 ) + -15.898 (Mar. 2023 ) + -9.851 (Jun. 2023 ) = $-95.5 Mil.
Tabula Rasa HealthCare's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 0.913 (Sep. 2022 ) + -2.396 (Dec. 2022 ) + -8.754 (Mar. 2023 ) + 5.107 (Jun. 2023 ) = $-5.1 Mil.
Tabula Rasa HealthCare's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was 112.021 (Sep. 2022 ) + -2.378 (Dec. 2022 ) + 0.18 (Mar. 2023 ) + -5.293 (Jun. 2023 ) = $104.5 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.
Tabula Rasa HealthCare (NAS:TRHC) 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 Jun. 2023, Tabula Rasa HealthCare has a Sloan Ratio of -54.74%, indicating earnings are more likely to be made up of accruals.
Tabula Rasa HealthCare Sloan Ratio % Related Terms
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Tabula Rasa HealthCare (Tabula Rasa HealthCare) Business Description
Tabula Rasa HealthCare Inc is engaged in providing patient-specific, data-driven technology and solutions that enable healthcare organizations to optimize medication regimens to improve patient outcomes, reduce hospitalizations, lower healthcare costs and manage risk. The cloud-based software solutions of the company help prescribers, pharmacists, and healthcare organizations in managing the medication-related needs of patients. The firm operates the business through two segments namely CareVention HealthCare and MedWise HealthCare.
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