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RadioShack (FRA:TAN) Sloan Ratio % : -22.49% (As of Dec. 2013)


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What is RadioShack Sloan Ratio %?

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.

RadioShack's Sloan Ratio for the quarter that ended in Dec. 2013 was -22.49%.

As of Dec. 2013, RadioShack has a Sloan Ratio of -22.49%, indicating there is a warning stage of accrual build up.


RadioShack Sloan Ratio % Historical Data

The historical data trend for RadioShack'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.

* Premium members only.

RadioShack Sloan Ratio % Chart

RadioShack Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.65 6.03 -3.02 -0.10 -22.49

RadioShack Semi-Annual Data
Dec95 Dec96 Dec97 Dec98 Dec99 Dec00 Dec01 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.65 6.03 -3.02 -0.10 -22.49

Competitive Comparison of RadioShack's Sloan Ratio %

For the Specialty Retail subindustry, RadioShack'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.


RadioShack's Sloan Ratio % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, RadioShack's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where RadioShack's Sloan Ratio % falls into.



RadioShack 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.

RadioShack's Sloan Ratio for the fiscal year that ended in Dec. 2013 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2013 )-Cash Flow from Operations (A: Dec. 2013 )
-Cash Flow from Investing (A: Dec. 2013 ))/Total Assets (A: Dec. 2013 )
=(-292.146-26.134
--57.086)/1161.576
=-22.49%

RadioShack's Sloan Ratio for the quarter that ended in Dec. 2013 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2013 )
=(-292.146-26.134
--57.086)/1161.576
=-22.49%

For company reported annually, GuruFocus uses latest annual data as the TTM data. RadioShack's Net Income for the trailing twelve months (TTM) ended in Dec. 2013 was €-292 Mil.
RadioShack's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2013 was €26 Mil.
RadioShack's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2013 was €-57 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.


RadioShack  (FRA:TAN) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2013, RadioShack has a Sloan Ratio of -22.49%, indicating there is a warning stage of accrual build up.


RadioShack Sloan Ratio % Related Terms

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RadioShack (FRA:TAN) Business Description

Traded in Other Exchanges
N/A
Address
RS Legacy Corp, formerly RadioShack Corp was incorporated in 1967. The Company, along with its subsidiaries, is primarily engaged in the retail sale of consumer electronics goods and services through its RadioShack store chain. At December 31, 2013, it operated 4,297 U.S. company-operated stores under the RadioShack brand located throughout the United States, as well as in Puerto Rico and the U.S. Virgin Islands. These stores are located in strip centers and shopping malls, as well as individual storefronts. Each location carries a broad assortment of both name brand and private brand consumer electronics products. The Company's product lines are categorized into two platforms; namely mobility and retail. Its mobility platform includes postpaid and prepaid wireless handsets, commissions, residual income, prepaid wireless airtime, tablet devices, and e-readers. The retail platform includes remaining consumer electronics product categories and related accessories; batteries and power products; and technical products. The Company has other sales channels and support operations such as: Dealer Outlets, RadioShack de Mexico, RadioShack.com, Distribution Centers, RadioShack Technology Services and RadioShack Global Sourcing. The Company owns or is licensed to use many trademarks and service marks related to its RadioShack stores in the United States and in foreign countries. Its private brand manufactured products are sold under the RadioShack, AUVIO, Enercell and Gigaware trademark. It also owns patents and patent applications relating to consumer electronics products. The Company competes in the sale of its products and services with several retail formats, including national, regional, and independent consumer electronics retailers. It competes with department and specialty retail stores in certain product categories. It competes with wireless providers in mobility platform through their own retail and online presence. It also competes with big-box retailers, discount and warehouse retailers, and Internet retailers. The Company is subject to foreign, federal, state, and local laws and regulations including, but not limited to, the Fair Labor Standards Act and ERISA, each as amended, and regulations promulgated by the Federal Trade Commission, SEC, Internal Revenue Service, Department of Labor, Occupational Safety and Health Administration, and Environmental Protection Agency.

RadioShack (FRA:TAN) Headlines

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