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.
Phibro Animal Health's Sloan Ratio for the quarter that ended in Mar. 2024 was -1.72%.
As of Mar. 2024, Phibro Animal Health has a Sloan Ratio of -1.72%, indicating the company is in the safe zone and there is no funny business with accruals.
Phibro Animal Health Sloan Ratio % Historical Data
The historical data trend for Phibro Animal Health'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 Phibro Animal Health's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Phibro Animal Health'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.
Phibro Animal Health's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Phibro Animal Health's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Phibro Animal Health's Sloan Ratio % falls into.
Phibro Animal Health 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.
Phibro Animal Health's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
Phibro Animal Health's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 11.498 (Jun. 2023 ) + -8.015 (Sep. 2023 ) + 1.274 (Dec. 2023 ) + 8.405 (Mar. 2024 ) = $13.2 Mil.
Phibro Animal Health's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 20.238 (Jun. 2023 ) + 16.199 (Sep. 2023 ) + 31.558 (Dec. 2023 ) + 11.408 (Mar. 2024 ) = $79.4 Mil.
Phibro Animal Health's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -10.282 (Jun. 2023 ) + -15.352 (Sep. 2023 ) + -24.861 (Dec. 2023 ) + 1.13 (Mar. 2024 ) = $-49.4 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.
Phibro Animal Health (NAS:PAHC) 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, Phibro Animal Health has a Sloan Ratio of -1.72%, indicating the company is in the safe zone and there is no funny business with accruals.
Phibro Animal Health Sloan Ratio % Related Terms
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Phibro Animal Health (Phibro Animal Health) Business Description
Phibro Animal Health Corp operates as a diversified animal health and mineral nutrition company. It develops, manufactures, and markets products for a range of food animals comprising poultry, swine, beef and dairy cattle, and aquaculture. The product portfolio of the company includes animal health products such as antibacterials, anticoccidials, nutritional specialty products and vaccines, and mineral nutrition products. The company operates through three segments, Animal Health, Mineral Nutrition, and Performance Products, of which key revenue is derived from the Animal Health segment which relates to the development, manufacturing, and marketing of antibacterials, nutritional specialty products, and vaccines. The entity sells its products in the U.S. and other international countries.
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