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.
Syneron Medical's Sloan Ratio for the quarter that ended in Mar. 2017 was 0.31%.
As of Mar. 2017, Syneron Medical has a Sloan Ratio of 0.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Syneron Medical Sloan Ratio % Historical Data
The historical data trend for Syneron Medical'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 Syneron Medical's Sloan Ratio %
For the Medical Devices subindustry, Syneron Medical'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.
Syneron Medical's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Syneron Medical's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Syneron Medical's Sloan Ratio % falls into.
Syneron Medical 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.
Syneron Medical's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Syneron Medical's Net Income for the trailing twelve months (TTM) ended in Mar. 2017 was 0.982 (Jun. 2016 ) + 0.588 (Sep. 2016 ) + -0.901 (Dec. 2016 ) + -4.829 (Mar. 2017 ) = $-4.2 Mil.
Syneron Medical's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 5.59 (Jun. 2016 ) + 4.25 (Sep. 2016 ) + 6.449 (Dec. 2016 ) + -7.336 (Mar. 2017 ) = $9.0 Mil.
Syneron Medical's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2017 was -6.009 (Jun. 2016 ) + -2.392 (Sep. 2016 ) + 1.232 (Dec. 2016 ) + -6.798 (Mar. 2017 ) = $-14.0 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.
Syneron Medical (NAS:ELOS) 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. 2017, Syneron Medical has a Sloan Ratio of 0.31%, indicating the company is in the safe zone and there is no funny business with accruals.
Syneron Medical Sloan Ratio % Related Terms
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Syneron Medical (Syneron Medical) Business Description
Syneron Medical Ltd., was incorporated in the State of Israel in July 2000. The Company completed its initial public offering of ordinary shares in August 2004. It designs, develops and markets aesthetic medical products based on its various technologies including its proprietary Electro-Optical Synergy, or ELOS, technology, which uses the synergy between electrical energy, including radiofrequency or RF energy, and optical energy to provide effective, safe and affordable aesthetic medical treatments. The Company's products, which it sells mainly to physicians and other practitioners, target non-invasive aesthetic medical procedures, including hair removal, wrinkle reduction, rejuvenation of the skin's appearance through the treatment of superficial benign vascular and pigmented lesions, acne treatment, treatment of leg veins, treatment for the temporary reduction in the appearance of cellulite and thigh circumference, ablation and resurfacing of the skin and laser-assisted lipolysis and topical skin brightening products.
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