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.
LookSmart's Sloan Ratio for the quarter that ended in Jun. 2015 was 0.00%.
As of Jun. 2015, LookSmart has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
LookSmart Sloan Ratio % Historical Data
The historical data trend for LookSmart'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 LookSmart's Sloan Ratio %
For the Internet Content & Information subindustry, LookSmart'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.
LookSmart's Sloan Ratio % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, LookSmart's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where LookSmart's Sloan Ratio % falls into.
LookSmart 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.
LookSmart's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
LookSmart's Net Income for the trailing twelve months (TTM) ended in Jun. 2015 was -1.302 (Sep. 2014 ) + -1.36 (Dec. 2014 ) + -0.99 (Mar. 2015 ) + -0.993 (Jun. 2015 ) = $-4.65 Mil.
LookSmart's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was -1.092 (Sep. 2014 ) + -0.759 (Dec. 2014 ) + -0.386 (Mar. 2015 ) + -1.017 (Jun. 2015 ) = $-3.25 Mil.
LookSmart's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2015 was 0.345 (Sep. 2014 ) + 0.028 (Dec. 2014 ) + -0.29 (Mar. 2015 ) + 0 (Jun. 2015 ) = $0.08 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.
LookSmart (NAS:LOOK) 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 Jun. 2015, LookSmart has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
LookSmart Sloan Ratio % Related Terms
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LookSmart Ltd was organized in 1996 and is incorporated in the State of Delaware. The Company is a search advertising network solutions Company that provides relevant solutions for search advertising customers. It operates in a large online search advertising ecosystem serving ads that target user queries on partner sites. It operates in the middle of this ecosystem, acquiring search queries from a variety of sources and matching them with the keywords of its search advertising customers. The Companys largest category of customers has been intermediaries, the majority of which purchase clicks to sell into the affiliate networks of the large search engine providers. Another category of customers are direct advertisers and their agencies whose objective is to obtain conversions or sales from the clicks. The last category of customers is self-service advertisers that sign-up online and pays by credit card. It offers search advertising customers targeted, pay-per-click (PPC) search via a monitored search advertising distribution network using the Companys AdCenter platform technology. The Companys search advertising network includes publishers and search advertising customers, including intermediaries and direct advertising customers and their agencies as well as self-service customers in the United States and certain other countries. The Companys application programming interface (API) allows search advertising customers and their advertising agencies to connect any type of marketing or reporting software with minimal effort for easier access, management, and optimization of search advertising campaigns. It also offers publishers licensed private-label search advertiser network solutions based on its AdCenter platform technology (Publisher Solutions). Publisher Solutions consist of hosted auction-based ad serving with an ad backfill capability that allows publishers and portals to manage their advertiser relationships, distribution channels and accounts. The Companys trademarks include LookSmart. It is subject to a number of domestic state and federal laws that affect companies conducting business on the Internet.
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