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.
Redishred Capital's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.76%.
As of Dec. 2023, Redishred Capital has a Sloan Ratio of -2.76%, indicating the company is in the safe zone and there is no funny business with accruals.
Redishred Capital Sloan Ratio % Historical Data
The historical data trend for Redishred Capital'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 Redishred Capital's Sloan Ratio %
For the Specialty Business Services subindustry, Redishred Capital'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.
Redishred Capital's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Redishred Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Redishred Capital's Sloan Ratio % falls into.
Redishred Capital 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.
Redishred Capital's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Redishred Capital's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.735 (Mar. 2023 ) + -0.97 (Jun. 2023 ) + 1.068 (Sep. 2023 ) + -1.362 (Dec. 2023 ) = C$-0.53 Mil.
Redishred Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3.62 (Mar. 2023 ) + 2.665 (Jun. 2023 ) + 3.539 (Sep. 2023 ) + 2.959 (Dec. 2023 ) = C$12.78 Mil.
Redishred Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.215 (Mar. 2023 ) + -2.83 (Jun. 2023 ) + -5.651 (Sep. 2023 ) + -0.99 (Dec. 2023 ) = C$-10.69 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.
Redishred Capital (TSXV:KUT) 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, Redishred Capital has a Sloan Ratio of -2.76%, indicating the company is in the safe zone and there is no funny business with accruals.
Redishred Capital Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Redishred Capital's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Redishred Capital Corp is a company that manages and operates the Proshred brand and business platform in the United States and internationally. It operates the Proshred system under two business models, via franchising in the United States, and via direct ownership of shredding trucks and facilities in eight locations in the United States. The operating segments of the company are (1) the granting and managing of shredding business franchises under the "Proshred" trademark (Franchising and licensing), (2) the operation of the corporately owned shredding business (Corporate locations) and (3) supporting the franchises and corporately owned shredding businesses (Corporate).
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