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.
Mentor Capital's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.02%.
As of Dec. 2023, Mentor Capital has a Sloan Ratio of -0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Mentor Capital Sloan Ratio % Historical Data
The historical data trend for Mentor 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 Mentor Capital's Sloan Ratio %
For the Capital Markets subindustry, Mentor 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.
Mentor Capital's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Mentor Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mentor Capital's Sloan Ratio % falls into.
Mentor 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.
Mentor Capital's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Mentor Capital's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -0.049 (Mar. 2023 ) + -0.129 (Jun. 2023 ) + -0.173 (Sep. 2023 ) + 3.509 (Dec. 2023 ) = $3.16 Mil.
Mentor Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0.072 (Mar. 2023 ) + 0.083 (Jun. 2023 ) + -0.197 (Sep. 2023 ) + -2.385 (Dec. 2023 ) = $-2.43 Mil.
Mentor Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0.107 (Mar. 2023 ) + -0.043 (Jun. 2023 ) + -0.046 (Sep. 2023 ) + 5.568 (Dec. 2023 ) = $5.59 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.
Mentor Capital (OTCPK:MNTR) 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, Mentor Capital has a Sloan Ratio of -0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Mentor Capital Sloan Ratio % Related Terms
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Mentor Capital (Mentor Capital) Business Description
Mentor Capital Inc acquires and provides liquidity for medical and social use cannabis companies. The company is operating an acquisition and investment business. It operates through two segments namely the historic cannabis and medical marijuana segment, and the Company's legacy investment in WCI, which works with business park owners, governmental centers, and apartment complexes to reduce their facility-related operating costs. The cannabis and medical marijuana segment include the operation of subsidiaries in the Cannabis and medical marijuana sector. Mentor's focus is medical and the company seeks to facilitate the application of cannabis to cancer wasting, calming seizures, and Parkinson's disease, reducing ocular pressures from glaucoma, and blunting chronic pain.
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