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.
The Cooper's Sloan Ratio for the quarter that ended in Jan. 2024 was 3.22%.
As of Jan. 2024, The Cooper has a Sloan Ratio of 3.22%, indicating the company is in the safe zone and there is no funny business with accruals.
The Cooper Sloan Ratio % Historical Data
The historical data trend for The Cooper'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 The Cooper's Sloan Ratio %
For the Medical Instruments & Supplies subindustry, The Cooper'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.
The Cooper's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, The Cooper's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Cooper's Sloan Ratio % falls into.
The Cooper 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.
The Cooper's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as
The Cooper's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 39.8 (Apr. 2023 ) + 85.3 (Jul. 2023 ) + 84.5 (Oct. 2023 ) + 81.2 (Jan. 2024 ) = $291 Mil.
The Cooper's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 124.2 (Apr. 2023 ) + 142.5 (Jul. 2023 ) + 174.2 (Oct. 2023 ) + 122.7 (Jan. 2024 ) = $564 Mil.
The Cooper's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -82 (Apr. 2023 ) + -92.9 (Jul. 2023 ) + -160.8 (Oct. 2023 ) + -324.1 (Jan. 2024 ) = $-660 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.
The Cooper (NAS:COO) 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 Jan. 2024, The Cooper has a Sloan Ratio of 3.22%, indicating the company is in the safe zone and there is no funny business with accruals.
The Cooper Sloan Ratio % Related Terms
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The Cooper Companies is one of the largest eye care companies in the U.S. It operates in two segments: CooperVision and CooperSurgical. CooperVision is a pure-play contact lens business and is composed of a suite of spherical, multifocal, and toric contact lenses. The company also has one of the most comprehensive specialty lens portfolios in the world. With brands including Proclear, Biofinity, MyDay, and clariti, Cooper controls roughly a quarter of the U.S. contact lens market. CooperSurgical, founded in 1990, is made up of equipment related to reproductive care, fertility, and women's care. Cooper has the broadest medical device coverage of the entire IVF cycle. It also has Paragard, the only hormone-free IUD in the U.S., and controls 17% of the U.S. IUD market.
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