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.
Solitron Devices's Sloan Ratio for the quarter that ended in Nov. 2023 was -5.38%.
As of Nov. 2023, Solitron Devices has a Sloan Ratio of -5.38%, indicating the company is in the safe zone and there is no funny business with accruals.
Solitron Devices Sloan Ratio % Historical Data
The historical data trend for Solitron Devices'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 Solitron Devices's Sloan Ratio %
For the Semiconductor Equipment & Materials subindustry, Solitron Devices'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.
Solitron Devices's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Solitron Devices's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Solitron Devices's Sloan Ratio % falls into.
Solitron Devices 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.
Solitron Devices's Sloan Ratio for the fiscal year that ended in Feb. 2023 is calculated as
Solitron Devices's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was 0.232 (Feb. 2023 ) + -0.171 (May. 2023 ) + 0.2 (Aug. 2023 ) + 0.086 (Nov. 2023 ) = $0.35 Mil.
Solitron Devices's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was -0.658 (Feb. 2023 ) + -0.007 (May. 2023 ) + 0.974 (Aug. 2023 ) + 0.393 (Nov. 2023 ) = $0.70 Mil.
Solitron Devices's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was 1.508 (Feb. 2023 ) + 0.182 (May. 2023 ) + 1.555 (Aug. 2023 ) + -2.552 (Nov. 2023 ) = $0.69 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.
Solitron Devices (OTCPK:SODI) 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 Nov. 2023, Solitron Devices has a Sloan Ratio of -5.38%, indicating the company is in the safe zone and there is no funny business with accruals.
Solitron Devices Sloan Ratio % Related Terms
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Solitron Devices (Solitron Devices) Business Description
Solitron Devices Inc designs, develop, manufactures, and markets solid-state semiconductor components and related devices mainly for the military and aerospace markets. It manufactures a large variety of bipolar and metal oxide semiconductor (MOS) power transistors, power and control hybrids, junction and power MOS field-effect transistors (Power MOSFETS), field effect transistors, and other related products. It derives the majority of its revenues from its business operations in the United States, while it also holds a presence in Canada, Latin America, the Far East, and the Middle East.
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