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.
Viasystems Group's Sloan Ratio for the quarter that ended in Mar. 2015 was -2.52%.
As of Mar. 2015, Viasystems Group has a Sloan Ratio of -2.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Viasystems Group Sloan Ratio % Historical Data
The historical data trend for Viasystems Group'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 Viasystems Group's Sloan Ratio %
For the Electronic Components subindustry, Viasystems Group'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.
Viasystems Group's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Viasystems Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Viasystems Group's Sloan Ratio % falls into.
Viasystems Group 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.
Viasystems Group's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
Viasystems Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2015 was -2.84 (Jun. 2014 ) + -12.854 (Sep. 2014 ) + 11.338 (Dec. 2014 ) + -7.841 (Mar. 2015 ) = €-12.2 Mil.
Viasystems Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was -1.861 (Jun. 2014 ) + 11.541 (Sep. 2014 ) + 29.859 (Dec. 2014 ) + 24.246 (Mar. 2015 ) = €63.8 Mil.
Viasystems Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2015 was -7.046 (Jun. 2014 ) + -12.509 (Sep. 2014 ) + -15.793 (Dec. 2014 ) + -14.383 (Mar. 2015 ) = €-49.7 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.
Viasystems Group (FRA:VY7) 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. 2015, Viasystems Group has a Sloan Ratio of -2.52%, indicating the company is in the safe zone and there is no funny business with accruals.
Viasystems Group Sloan Ratio % Related Terms
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Viasystems Group Inc is a Delaware Corporation formed in August 28, 1996. The Company is a provider of complex multi-layer printed circuit boards (PCBs) and electromechanical solutions (E-M Solutions). Its segment includes Printed Circuit Boards, which includes PCB products; and Assembly, which includes E-M Solutions products and services. Printed circuit boards serve as the electronic backbone of all electronic equipment, and its E-M Solutions products and services integrate PCBs and other components into finished or semi-finished electronic equipment, which include custom and standard metal enclosures, metal cabinets, metal racks and sub-racks, backplanes, cable assemblies and busbars. Printed Circuit Boards serve all electronic equipment, providing the circuitry and mounting surfaces necessary to interconnect discrete electronic components, such as integrated circuits, capacitors and resistors. Electro-Mechanical Solutions include a products and services, mainly including assembly of backplanes, custom and standard metal enclosures, racks and sub-racks, cabinets, systems integration and assembly, final product testing and fulfillment. The Company's primary direct competitors are Compeq Manufacturing Co. Ltd., Flextronics Corporation, Gold Circuit Electronics Ltd., Kingboard Chemical Holdings Ltd., Nanya Technology Corp., Sanmina-SCI Corp. and TTM Technologies, Inc. It markets its products through its own sales and marketing organization and through relationships with independent sales agents around the world. Its sells its products to various end markets including Automotive, Industrial & instrumentation, Telecommunications, Computer and datacommunications, and Military and aerospace.
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