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Canadian North Resources (TSXV:CNRI) Sloan Ratio %

: 43.86% (As of Sep. 2023)
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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.

Canadian North Resources's Sloan Ratio for the quarter that ended in Sep. 2023 was 43.86%.

Warning Sign:

When sloan ratio (38.44)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Sep. 2023, Canadian North Resources has a Sloan Ratio of 43.86%, indicating earnings are more likely to be made up of accruals.


Canadian North Resources Sloan Ratio % Historical Data

The historical data trend for Canadian North Resources'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.

* Premium members only.

Canadian North Resources Annual Data
Trend Dec20 Dec21 Dec22
Sloan Ratio %
1.20 15.42 38.44

Canadian North Resources Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 35.92 38.37 39.36 39.58 43.86

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, Canadian North Resources'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.


Canadian North Resources Sloan Ratio % Distribution

For the Metals & Mining industry and Basic Materials sector, Canadian North Resources's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Canadian North Resources's Sloan Ratio % falls into.



Canadian North Resources 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.

Canadian North Resources's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2022 )-Cash Flow from Operations (A: Dec. 2022 )
-Cash Flow from Investing (A: Dec. 2022 ))/Total Assets (A: Dec. 2022 )
=(-3.895--1.829
--15.382)/34.643
=38.44%

Canadian North Resources's Sloan Ratio for the quarter that ended in Sep. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2023 )
=(-1.691--0.589
--21.908)/47.432
=43.86%

Canadian North Resources's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 0.123 (Dec. 2022 ) + -0.336 (Mar. 2023 ) + 0.247 (Jun. 2023 ) + -1.725 (Sep. 2023 ) = C$-1.69 Mil.
Canadian North Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 0.089 (Dec. 2022 ) + -0.836 (Mar. 2023 ) + 1.642 (Jun. 2023 ) + -1.484 (Sep. 2023 ) = C$-0.59 Mil.
Canadian North Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -4.642 (Dec. 2022 ) + -0.881 (Mar. 2023 ) + -7.532 (Jun. 2023 ) + -8.853 (Sep. 2023 ) = C$-21.91 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.


Canadian North Resources  (TSXV:CNRI) 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 Sep. 2023, Canadian North Resources has a Sloan Ratio of 43.86%, indicating earnings are more likely to be made up of accruals.


Canadian North Resources Sloan Ratio % Related Terms

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Canadian North Resources (TSXV:CNRI) Business Description

Traded in Other Exchanges
Address
299 Courtneypark Dr. E, 3rd Floor, Mississauga, ON, CAN
Canadian North Resources Inc is a Canadian mining exploration and development company that owns an interest in the Ferguson Lake mining property in the Kivalliq Region of Nunavut, Canada.

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