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.
Solid State System Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -40.22%.
Warning Sign:
When sloan ratio (-37.37)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Solid State System Co has a Sloan Ratio of -40.22%, indicating earnings are more likely to be made up of accruals.
Solid State System Co Sloan Ratio % Historical Data
The historical data trend for Solid State System Co'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 Solid State System Co's Sloan Ratio %
For the Semiconductors subindustry, Solid State System Co'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.
Solid State System Co's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Solid State System Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Solid State System Co's Sloan Ratio % falls into.
Solid State System Co 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.
Solid State System Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Solid State System Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -54.756 (Jun. 2023 ) + -67.75 (Sep. 2023 ) + -75.524 (Dec. 2023 ) + -63.365 (Mar. 2024 ) = NT$-261.4 Mil.
Solid State System Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -11.735 (Jun. 2023 ) + -15.282 (Sep. 2023 ) + -11.045 (Dec. 2023 ) + -29.496 (Mar. 2024 ) = NT$-67.6 Mil.
Solid State System Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -5.168 (Jun. 2023 ) + -4.204 (Sep. 2023 ) + -1.041 (Dec. 2023 ) + -1.591 (Mar. 2024 ) = NT$-12.0 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.
Solid State System Co (ROCO:3259) 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. 2024, Solid State System Co has a Sloan Ratio of -40.22%, indicating earnings are more likely to be made up of accruals.
Solid State System Co Sloan Ratio % Related Terms
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Solid State System Co (ROCO:3259) Business Description
Solid State System Co Ltd is engaged in the production and distribution of flash memory controller integrated circuits and audio ICs. It offers various storage solutions, including USB flash controllers and SSD turn-key solutions; multimedia audio solutions, such as USB speakers, USB headsets, and USB line-in controllers; and MEMS microphones.
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