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.
Clever Leaves Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -35.48%.
Warning Sign:
When sloan ratio (-35.48)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Clever Leaves Holdings has a Sloan Ratio of -35.48%, indicating earnings are more likely to be made up of accruals.
Clever Leaves Holdings 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 Clever Leaves Holdings's Sloan Ratio %
For the Drug Manufacturers - Specialty & Generic subindustry, Clever Leaves Holdings'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.
Clever Leaves Holdings's Sloan Ratio % Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Clever Leaves Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Clever Leaves Holdings's Sloan Ratio % falls into.
Clever Leaves Holdings 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.
Clever Leaves Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Clever Leaves Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -4.081 (Mar. 2023 ) + -3.595 (Jun. 2023 ) + -5.138 (Sep. 2023 ) + -5.085 (Dec. 2023 ) = $-17.90 Mil.
Clever Leaves Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -6.077 (Mar. 2023 ) + -1.687 (Jun. 2023 ) + -2.201 (Sep. 2023 ) + -1.543 (Dec. 2023 ) = $-11.51 Mil.
Clever Leaves Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.035 (Mar. 2023 ) + -0.044 (Jun. 2023 ) + 2.717 (Sep. 2023 ) + 2.056 (Dec. 2023 ) = $4.69 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.
Clever Leaves Holdings (OTCPK:CLVR) 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, Clever Leaves Holdings has a Sloan Ratio of -35.48%, indicating earnings are more likely to be made up of accruals.
Clever Leaves Holdings Sloan Ratio % Related Terms
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Clever Leaves Holdings (Clever Leaves Holdings) Business Description
Clever Leaves Holdings Inc is a producer of pharmaceutical and consumer cannabis brands. The company operates and has investments in Canada, Colombia, Germany, Portugal, and the United States. The company operates in two reportable segments, 1. The Cannabinoid operating segment: is comprised of the Company's cultivation, extraction, and commercialization of cannabinoid products. 2. Non-Cannabinoid operating segment is engaged in the business of formulating, manufacturing, marketing, selling, distributing, and otherwise commercializing nutraceutical and other natural remedies, wellness products, detoxification products, and nutritional and dietary supplements.
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