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.
Checkpoint Systems's Sloan Ratio for the quarter that ended in Mar. 2016 was -10.40%.
As of Mar. 2016, Checkpoint Systems has a Sloan Ratio of -10.40%, indicating there is a warning stage of accrual build up.
Checkpoint Systems Sloan Ratio % Historical Data
The historical data trend for Checkpoint Systems'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 Checkpoint Systems's Sloan Ratio %
For the Security & Protection Services subindustry, Checkpoint Systems'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.
Checkpoint Systems's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Checkpoint Systems's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Checkpoint Systems's Sloan Ratio % falls into.
Checkpoint Systems 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.
Checkpoint Systems's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Checkpoint Systems's Net Income for the trailing twelve months (TTM) ended in Mar. 2016 was -9.492 (Jun. 2015 ) + -3.991 (Sep. 2015 ) + -10.173 (Dec. 2015 ) + -32.521 (Mar. 2016 ) = $-56.2 Mil.
Checkpoint Systems's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 0.067 (Jun. 2015 ) + 8.068 (Sep. 2015 ) + 29.787 (Dec. 2015 ) + -13.703 (Mar. 2016 ) = $24.2 Mil.
Checkpoint Systems's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 was -4.478 (Jun. 2015 ) + -3.31 (Sep. 2015 ) + -3.96 (Dec. 2015 ) + -3.023 (Mar. 2016 ) = $-14.8 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.
Checkpoint Systems (NYSE:CKP) 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. 2016, Checkpoint Systems has a Sloan Ratio of -10.40%, indicating there is a warning stage of accrual build up.
Checkpoint Systems Sloan Ratio % Related Terms
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Checkpoint Systems (Checkpoint Systems) Business Description
Checkpoint Systems Inc was founded in 1969. Company is a manufacturer and provider of technology-driven loss prevention, inventory management and labeling solutions to the retail and apparel industries. It also provides electronic article surveillance systems and tags using RF and electro-magnetic technology. It also engineer systems using RF and acousto-magnetic technology. It operates directly in 28 countries. Its products are developed and manufactured in-house and sold through direct distribution and reseller channels. Company reported its results of operations in three segments: Merchandise Availability Solutions (MAS), Apparel Labeling Solutions (ALS), and Retail Merchandising Solutions (RMS). ALS includes the results of radio frequency identification (RFID) labels business, coupled with data management platform and network of service bureaus that manage the printing of variable information on apparel labels and tags. MAS segment, which is focused on loss prevention and Merchandise Visibility (RFID), includes EAS systems, EAS consumables, Alpha high-theft solutions, RFID systems and software and CheckView in Asia. There were no changes to the RMS Segment. Its competitors include: Tyco International Ltd., Avery Dennison Corporation, SML Group, R-Pac International Corporation, NexGen, Fineline Technologies, SATO DCS & Labeling Worldwide, Garvey Products Inc., Hallo, Avery Dennison Corporation, and Prix International.
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