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.
Afrocentric Investment's Sloan Ratio for the quarter that ended in Dec. 2023 was -3.52%.
As of Dec. 2023, Afrocentric Investment has a Sloan Ratio of -3.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Afrocentric Investment 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 Afrocentric Investment's Sloan Ratio %
For the Medical Care Facilities subindustry, Afrocentric Investment'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.
Afrocentric Investment's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Afrocentric Investment's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Afrocentric Investment's Sloan Ratio % falls into.
Afrocentric Investment 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.
Afrocentric Investment's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Afrocentric Investment's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 56.88 (Jun. 2023 ) + 173.761 (Dec. 2023 ) = R231 Mil.
Afrocentric Investment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 395.044 (Jun. 2023 ) + 297.339 (Dec. 2023 ) = R692 Mil.
Afrocentric Investment's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -134.008 (Jun. 2023 ) + -131.88 (Dec. 2023 ) = R-266 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.
Afrocentric Investment (JSE:ACT) 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, Afrocentric Investment has a Sloan Ratio of -3.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Afrocentric Investment Sloan Ratio % Related Terms
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Afrocentric Investment (JSE:ACT) Business Description
Afrocentric Investment Corp Ltd is a black-owned investment holding company with an investment portfolio focused on services to the healthcare sector. It seeks to invest in healthcare-related businesses that demonstrate prospects for growth as well as diversify its revenue sources while contributing to the sustainable health and welfare of South African communities. The company provides health administration and health risk management solutions to the healthcare industry. It also provides a range of complementary services to its traditional medical scheme clients and a portfolio of healthcare-related enterprises. These services include information technology solutions, transactional switching, specialized disease management, pharmaceutical wholesaling, amongst others.
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