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.
* 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 Radius Residential Care's Sloan Ratio %
For the Medical Care Facilities subindustry, Radius Residential Care'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.
Radius Residential Care's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Radius Residential Care's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Radius Residential Care's Sloan Ratio % falls into.
Radius Residential Care 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.
Radius Residential Care's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Radius Residential Care's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1.418 (Sep. 2023 ) + -9.906 (Mar. 2024 ) = NZ$-8.5 Mil.
Radius Residential Care's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 5.6 (Sep. 2023 ) + 8.5 (Mar. 2024 ) = NZ$14.1 Mil.
Radius Residential Care's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.973 (Sep. 2023 ) + 16.129 (Mar. 2024 ) = NZ$15.2 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.
Radius Residential Care (NZSE:RAD) 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 Mar. 2024, Radius Residential Care has a Sloan Ratio of -11.28%, indicating there is a warning stage of accrual build up.
Radius Residential Care Sloan Ratio % Related Terms
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Radius Residential Care (NZSE:RAD) Business Description
Radius Residential Care Ltd is a health and aged care provider for elderly and disabled people. The company provides residential care, hospital care, dementia care, respite care, and palliative care. The Company operates in one operating segment being the provision of aged care in New Zealand. Also, the company provides Young Disabled Care services, for those under 65 who require assistance with self-care, mobility and/or communication.
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