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.
Geospace Technologies's Sloan Ratio for the quarter that ended in Dec. 2023 was 10.02%.
As of Dec. 2023, Geospace Technologies has a Sloan Ratio of 10.02%, indicating there is a warning stage of accrual build up.
Geospace Technologies Sloan Ratio % Historical Data
The historical data trend for Geospace Technologies'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 Geospace Technologies's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, Geospace Technologies'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.
Geospace Technologies's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Geospace Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Geospace Technologies's Sloan Ratio % falls into.
Geospace Technologies 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.
Geospace Technologies's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Geospace Technologies's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 4.637 (Mar. 2023 ) + 3.228 (Jun. 2023 ) + 4.438 (Sep. 2023 ) + 12.679 (Dec. 2023 ) = $25.0 Mil.
Geospace Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.214 (Mar. 2023 ) + 8.206 (Jun. 2023 ) + 12.43 (Sep. 2023 ) + 2.652 (Dec. 2023 ) = $23.1 Mil.
Geospace Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 11.912 (Mar. 2023 ) + -3.828 (Jun. 2023 ) + -20.208 (Sep. 2023 ) + -2.74 (Dec. 2023 ) = $-14.9 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.
Geospace Technologies (NAS:GEOS) 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, Geospace Technologies has a Sloan Ratio of 10.02%, indicating there is a warning stage of accrual build up.
Geospace Technologies Sloan Ratio % Related Terms
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Geospace Technologies (Geospace Technologies) Business Description
Geospace Technologies Corp is engaged in designing and manufacturing of seismic instruments and non-seismic equipment used in the oil and gas industry. The company has three different segments: oil and gas markets, adjacent markets, and emerging markets. The oil and gas markets segment, which accounts for the majority of the company's revenue, includes traditional exploration products, wireless exploration products, and reservoir characterization products and services. The adjacent markets business is closely tied to the oil and gas markets and includes imaging products and industrial products. The company operates globally across Asia, Canada, Europe, South America and others with more than half of revenue generated within the United States.
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