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Gigamon (Gigamon) Sloan Ratio % : -2.71% (As of Sep. 2017)


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What is Gigamon Sloan Ratio %?

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.

Gigamon's Sloan Ratio for the quarter that ended in Sep. 2017 was -2.71%.

As of Sep. 2017, Gigamon has a Sloan Ratio of -2.71%, indicating the company is in the safe zone and there is no funny business with accruals.


Gigamon Sloan Ratio % Historical Data

The historical data trend for Gigamon'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.

* Premium members only.

Gigamon Sloan Ratio % Chart

Gigamon Annual Data
Trend Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Sloan Ratio %
Get a 7-Day Free Trial -35.23 14.79 3.94 -25.41 9.89

Gigamon Quarterly Data
Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.51 9.89 4.05 -0.23 -2.71

Competitive Comparison of Gigamon's Sloan Ratio %

For the Communication Equipment subindustry, Gigamon'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.


Gigamon's Sloan Ratio % Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Gigamon's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Gigamon's Sloan Ratio % falls into.



Gigamon 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.

Gigamon's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2016 )-Cash Flow from Operations (A: Dec. 2016 )
-Cash Flow from Investing (A: Dec. 2016 ))/Total Assets (A: Dec. 2016 )
=(49.432-37.048
--27.283)/400.999
=9.89%

Gigamon's Sloan Ratio for the quarter that ended in Sep. 2017 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2017 )
=(-0.974-27.38
--16.522)/436.395
=-2.71%

Gigamon's Net Income for the trailing twelve months (TTM) ended in Sep. 2017 was 6.423 (Dec. 2016 ) + -2.237 (Mar. 2017 ) + -7.338 (Jun. 2017 ) + 2.178 (Sep. 2017 ) = $-1.0 Mil.
Gigamon's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2017 was 5.879 (Dec. 2016 ) + 9.27 (Mar. 2017 ) + -0.124 (Jun. 2017 ) + 12.355 (Sep. 2017 ) = $27.4 Mil.
Gigamon's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2017 was -22.256 (Dec. 2016 ) + 1.095 (Mar. 2017 ) + -4.743 (Jun. 2017 ) + 9.382 (Sep. 2017 ) = $-16.5 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.


Gigamon  (NYSE:GIMO) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Sep. 2017, Gigamon has a Sloan Ratio of -2.71%, indicating the company is in the safe zone and there is no funny business with accruals.


Gigamon Sloan Ratio % Related Terms

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Gigamon (Gigamon) Business Description

Traded in Other Exchanges
N/A
Address
Gigamon Inc develops designs and sells solutions and products that deliver visibility of traffic across networks. It serves global enterprises, service providers and governments.
Executives
John H Kispert director
Dario Zamarian director 3300 OLCOTT STREET, SANTA CLARA CA 95054
Paul Hooper director, officer: Chief Executive Officer 3585 MONROE STREET, SANTA CLARA CA 95051
Paul J Milbury director
Coviello Arthur W Jr director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Rex S Jackson officer: Chief Financial Officer C/O SYMYX TECHNOLOGIES, INC., 3100 CENTRAL EXPRESSWAY, SANTA CLARA CA 95051
Robert E Switz director 13625 TECHNOLOGY DRIVE, EDEN PRAIRIE MN 55344
Helmut Wilke officer: Sr. VP Worldwide Sales 3585 MONROE STREET, SANTA CLARA CA 95051
Kenneth A Goldman director C/O YAHOO! INC., 701 FIRST AVENUE, SUNNYVALE CA 94089
Highland Capital Partners Vii-b L P 10 percent owner 92 HAYDEN AVE, LEXINGTON MA 02421
Highland Capital Partners Vii-c Lp 10 percent owner 92 HAYDEN AVE, LEXINGTON MA 02421
Highland Capital Partners Vii Lp 10 percent owner 92 HAYDEN AVE, LEXINGTON MA 02421
Highland Entrepreneurs Fund Vii Limited Partnership 10 percent owner 92 HAYDEN AVENUE, LEXINGTON MA 02421
Highland Management Partners Vii, Llc 10 percent owner ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142
Highland Management Partners Vii Limited Partnership 10 percent owner ONE BROADWAY, 16TH FLOOR, CAMBRIDGE MA 02142

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