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.
Star Equity Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was 8.28%.
As of Dec. 2023, Star Equity Holdings has a Sloan Ratio of 8.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Star Equity Holdings Sloan Ratio % Historical Data
The historical data trend for Star Equity Holdings'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 Star Equity Holdings's Sloan Ratio %
For the Diagnostics & Research subindustry, Star Equity 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.
Star Equity Holdings's Sloan Ratio % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Star Equity Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Star Equity Holdings's Sloan Ratio % falls into.
Star Equity 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.
Star Equity Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Star Equity Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.435 (Mar. 2023 ) + 25.591 (Jun. 2023 ) + -2.622 (Sep. 2023 ) + 1.728 (Dec. 2023 ) = $25.13 Mil.
Star Equity Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 5.132 (Mar. 2023 ) + -3.267 (Jun. 2023 ) + 0.804 (Sep. 2023 ) + 0.029 (Dec. 2023 ) = $2.70 Mil.
Star Equity Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.218 (Mar. 2023 ) + 20.615 (Jun. 2023 ) + -0.894 (Sep. 2023 ) + -3.321 (Dec. 2023 ) = $16.18 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.
Star Equity Holdings (NAS:STRR) 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, Star Equity Holdings has a Sloan Ratio of 8.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Star Equity Holdings Sloan Ratio % Related Terms
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Star Equity Holdings (Star Equity Holdings) Business Description
Star Equity Holdings Inc is a multi-industry diversified holding company with three segments; Healthcare segment provides products and services in the area of nuclear medicine imaging with a focus on cardiac health. It provides imaging services to healthcare providers using a fleet of solid-state gamma cameras and also the manufacturing, distribution, and maintenance of gamma cameras, The construction segment manufactures modular housing units for commercial and residential applications. It operates in two businesses: modular building manufacturing and structural wall panel and wood foundation manufacturing, including building supply retail operations, and The investments segment generates intercompany revenue from the lease of commercial properties and equipment.
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