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 Rocky Mountain Industrials's Sloan Ratio %
For the Other Industrial Metals & Mining subindustry, Rocky Mountain Industrials'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.
Rocky Mountain Industrials's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Rocky Mountain Industrials's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rocky Mountain Industrials's Sloan Ratio % falls into.
Rocky Mountain Industrials 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.
Rocky Mountain Industrials's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was -1.918 (Sep. 2022 ) + -1.792 (Dec. 2022 ) + -1.941 (Mar. 2023 ) + -1.526 (Jun. 2023 ) = $-7.18 Mil.
Rocky Mountain Industrials's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was -0.229 (Sep. 2022 ) + -1.23 (Dec. 2022 ) + 0.701 (Mar. 2023 ) + 3.318 (Jun. 2023 ) = $2.56 Mil.
Rocky Mountain Industrials's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -1.56 (Sep. 2022 ) + -0.502 (Dec. 2022 ) + -3.957 (Mar. 2023 ) + -7.422 (Jun. 2023 ) = $-13.44 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.
Rocky Mountain Industrials (OTCPK:RMRI) 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 Jun. 2023, Rocky Mountain Industrials has a Sloan Ratio of 10.75%, indicating there is a warning stage of accrual build up.
Rocky Mountain Industrials Sloan Ratio % Related Terms
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Rocky Mountain Industrials (Rocky Mountain Industrials) Business Description
Rocky Mountain Industrials Inc is an exploration stage company dedicated to operating industrial assets in the United States including minerals, materials, and services. The company's operating segment includes Aggregates and Rail Park. It generates maximum revenue from the Aggregates segment. The Aggregates segment produces chemical grade lime for use in the aggregates market. Its Rail Park segment consists of land under development to provide a rail terminal and services facility.
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