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.
Avistar Communications's Sloan Ratio for the quarter that ended in Mar. 2012 was -194.85%.
As of Mar. 2012, Avistar Communications has a Sloan Ratio of -194.85%, indicating earnings are more likely to be made up of accruals.
Avistar Communications 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 Avistar Communications's Sloan Ratio %
For the Communication Equipment subindustry, Avistar Communications'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.
Avistar Communications's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Avistar Communications's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Avistar Communications's Sloan Ratio % falls into.
Avistar Communications 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.
Avistar Communications's Sloan Ratio for the fiscal year that ended in Dec. 2011 is calculated as
Avistar Communications's Net Income for the trailing twelve months (TTM) ended in Mar. 2012 was -2.189 (Jun. 2011 ) + 0.493 (Sep. 2011 ) + -2.312 (Dec. 2011 ) + -1.443 (Mar. 2012 ) = $-5.45 Mil.
Avistar Communications's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2012 was -2.022 (Jun. 2011 ) + 1.222 (Sep. 2011 ) + 2.614 (Dec. 2011 ) + -0.78 (Mar. 2012 ) = $1.03 Mil.
Avistar Communications's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2012 was -0.016 (Jun. 2011 ) + -0.014 (Sep. 2011 ) + -0.041 (Dec. 2011 ) + -0.064 (Mar. 2012 ) = $-0.14 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.
Avistar Communications (OTCPK:AVSR) 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 Mar. 2012, Avistar Communications has a Sloan Ratio of -194.85%, indicating earnings are more likely to be made up of accruals.
Avistar Communications Sloan Ratio % Related Terms
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Avistar Communications (Avistar Communications) Business Description
Avistar Communications Corp creates technology that provides the missing critical element in unified communications: bringing people in organizations face-to-face, through enhanced communications for the true collaboration anytime, anyplace. The company's solutions include Bandwidth Management, CEBP, Firewall Traversal and Enterprise Endpoints. Its products include Avistar C3 Communicator, Avistar C3 Conference, Avistar C3 Command, Avistar C3 Call Control and Avistar C3 Media Engine.
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