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.
Intersil's Sloan Ratio for the quarter that ended in Dec. 2016 was 2.28%.
As of Dec. 2016, Intersil has a Sloan Ratio of 2.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Intersil Sloan Ratio % Historical Data
The historical data trend for Intersil'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 Intersil's Sloan Ratio %
For the Semiconductors subindustry, Intersil'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.
Intersil's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Intersil's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Intersil's Sloan Ratio % falls into.
Intersil 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.
Intersil's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Intersil's Net Income for the trailing twelve months (TTM) ended in Dec. 2016 was 11.751 (Mar. 2016 ) + 1.389 (Jun. 2016 ) + 15.883 (Sep. 2016 ) + 19.114 (Dec. 2016 ) = $48.1 Mil.
Intersil's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 17.67 (Mar. 2016 ) + 27.196 (Jun. 2016 ) + 23.269 (Sep. 2016 ) + 36.538 (Dec. 2016 ) = $104.7 Mil.
Intersil's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2016 was -2.688 (Mar. 2016 ) + -1.962 (Jun. 2016 ) + 1.503 (Sep. 2016 ) + -80.012 (Dec. 2016 ) = $-83.2 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.
Intersil (NAS:ISIL) 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 Dec. 2016, Intersil has a Sloan Ratio of 2.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Intersil Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Intersil's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Intersil Corp was formed in August 199. The Company designs and develops power management and precision analog integrated circuits, or ICs. The Company is a supplier of power management and precision analog technology for many of the rigorous applications in the infrastructure, industrial, automotive, military, aerospace, computing, and consumer markets. It supplies power IC solutions for battery management, processor power management, and display power management, including power regulators, converters and controllers, as well as fully integrated power modules. It also provides precision analog components such as amplifiers and buffers, proximity and light sensors, data converters, optoelectronics, video decoders and interface products. As a supplier of radiation-hardened devices to the military and aerospace industries, its product development methodologies reflect the long-term experience it has in designing products to meet the standards for reliability and performance in harsh environmental conditions, such as outer space. The Company divides its opportunities into two market categories: industrial & infrastructure and computing & consumer. The industrial & infrastructure market category includes products for power, automotive, aerospace, and broad-line industrial applications. Power products include industrial & infrastructure products - digital power controllers, modules and switching regulators, as well as other general purpose power devices. In automotive, it is targeting both infotainment and power applications. Its video decoders form a building block for console displays and rear view camera displays that are becoming a common safety feature in mid- to high-end vehicles and are required in all passenger cars in the U.S. beginning in 2018. It is applying its power management technology to expand its presence in infotainment and other opportunities within the automobile passenger cabin, and addressing the growing market for battery management within hybrid and fully electric vehicles. Its radiation-hardened products offer advantages for the rigorous applications, including commercial aerospace, and make up another large component of its industrial & infrastructure revenue. Its computing heritage has resulted in a suite of products for analog and digital power management addressing the rapid expansion of cloud computing and communications infrastructure. Its products also enable multiple functions in hundreds of other industrial systems from factory automation to test and measurement equipment. The Company sells its products through direct geographical salesforce that operates in the North American, European, Japanese and Asia/Pacific markets and a network of distributors. The Company competes in its target markets with many companies that may have greater resources, including, but not limited to, Analog Devices, Infineon, Linear Technology, Maxim Integrated Products, ON Semiconductor and Texas Instruments.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ISIL has been successfully added to your 