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.
Quest Resource Holding's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.28%.
As of Dec. 2023, Quest Resource Holding has a Sloan Ratio of -2.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Quest Resource Holding 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 Quest Resource Holding's Sloan Ratio %
For the Waste Management subindustry, Quest Resource Holding'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.
Quest Resource Holding's Sloan Ratio % Distribution in the Waste Management Industry
For the Waste Management industry and Industrials sector, Quest Resource Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Quest Resource Holding's Sloan Ratio % falls into.
Quest Resource Holding 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.
Quest Resource Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Quest Resource Holding's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -2.024 (Mar. 2023 ) + -0.887 (Jun. 2023 ) + -2.051 (Sep. 2023 ) + -2.33 (Dec. 2023 ) = $-7.3 Mil.
Quest Resource Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 2.977 (Mar. 2023 ) + 3.34 (Jun. 2023 ) + 0.35 (Sep. 2023 ) + -8.03 (Dec. 2023 ) = $-1.4 Mil.
Quest Resource Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.241 (Mar. 2023 ) + -0.594 (Jun. 2023 ) + -0.422 (Sep. 2023 ) + -0.64 (Dec. 2023 ) = $-1.9 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.
Quest Resource Holding (NAS:QRHC) 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, Quest Resource Holding has a Sloan Ratio of -2.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Quest Resource Holding Sloan Ratio % Related Terms
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Quest Resource Holding (Quest Resource Holding) Business Description
Quest Resource Holding Corp is a national provider of waste and recycling services to customers from across multiple industry sectors that are typically larger, multi-location businesses. The company creates customer-specific programs and perform the related services for the collection, processing, recycling, disposal, and tracking of waste streams and recyclables. The company's services focus on the waste streams and recyclables from big box, grocers, and other specialty retailers; automotive after-market operations such as automotive maintenance, quick lube, dealerships, and collision repair; transportation, logistics, and fleet operators; manufacturing and industrial facilities; multi-family and commercial properties; restaurant chains and food operations.
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