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.
Mesa Laboratories's Sloan Ratio for the quarter that ended in Dec. 2023 was 5.38%.
As of Dec. 2023, Mesa Laboratories has a Sloan Ratio of 5.38%, indicating the company is in the safe zone and there is no funny business with accruals.
Mesa Laboratories Sloan Ratio % Historical Data
The historical data trend for Mesa Laboratories'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 Mesa Laboratories's Sloan Ratio %
For the Scientific & Technical Instruments subindustry, Mesa Laboratories'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.
Mesa Laboratories's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Mesa Laboratories's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mesa Laboratories's Sloan Ratio % falls into.
Mesa Laboratories 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.
Mesa Laboratories's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Mesa Laboratories's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.611 (Mar. 2023 ) + -0.549 (Jun. 2023 ) + -1.23 (Sep. 2023 ) + 2.116 (Dec. 2023 ) = $0.9 Mil.
Mesa Laboratories's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 12.519 (Mar. 2023 ) + 9.939 (Jun. 2023 ) + 9.776 (Sep. 2023 ) + 11.535 (Dec. 2023 ) = $43.8 Mil.
Mesa Laboratories's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.026 (Mar. 2023 ) + -0.27 (Jun. 2023 ) + -0.634 (Sep. 2023 ) + -80.828 (Dec. 2023 ) = $-82.8 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.
Mesa Laboratories (NAS:MLAB) 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. 2023, Mesa Laboratories has a Sloan Ratio of 5.38%, indicating the company is in the safe zone and there is no funny business with accruals.
Mesa Laboratories Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Mesa Laboratories's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mesa Laboratories (Mesa Laboratories) Business Description
Mesa Laboratories Inc manufactures life sciences tools and critical quality control products. It operates in 4 divisions: Sterilization and Disinfection Control, which manufactures and sells biological, cleaning, and chemical indicators. It also provides testing and laboratory services, mainly to the dental industry; Biopharmaceutical Development segment develops, manufactures, and sells automated systems for protein analysis (immunoassays) and peptide synthesis solutions; Calibration Solutions division develops, manufactures, and sells quality control and calibration products used to measure or calibrate temperature, pressure, pH, humidity, and other such parameters for health and safety purposes; and Clinical Genomics. Its geographical segments include United States and Foreign.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MLAB has been successfully added to your 