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.
Mercury Systems's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.75%.
As of Dec. 2023, Mercury Systems has a Sloan Ratio of -2.75%, indicating the company is in the safe zone and there is no funny business with accruals.
Mercury Systems Sloan Ratio % Historical Data
The historical data trend for Mercury Systems'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 Mercury Systems's Sloan Ratio %
For the Aerospace & Defense subindustry, Mercury Systems'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.
Mercury Systems's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Mercury Systems's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mercury Systems's Sloan Ratio % falls into.
Mercury Systems 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.
Mercury Systems's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
Mercury Systems's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 5.156 (Mar. 2023 ) + -8.236 (Jun. 2023 ) + -36.708 (Sep. 2023 ) + -45.581 (Dec. 2023 ) = $-85.4 Mil.
Mercury Systems's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -3.217 (Mar. 2023 ) + 12.61 (Jun. 2023 ) + -39.068 (Sep. 2023 ) + 45.494 (Dec. 2023 ) = $15.8 Mil.
Mercury Systems's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -9.398 (Mar. 2023 ) + -8.761 (Jun. 2023 ) + -8.015 (Sep. 2023 ) + -7.99 (Dec. 2023 ) = $-34.2 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.
Mercury Systems (NAS:MRCY) 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, Mercury Systems has a Sloan Ratio of -2.75%, indicating the company is in the safe zone and there is no funny business with accruals.
Mercury Systems Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Mercury Systems's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mercury Systems (Mercury Systems) Business Description
Mercury Systems Inc is a commercial technology company serving the aerospace and defense industry. The company envisions, creates and delivers secure open architecture solutions powering a broad range of mission-critical applications in the challenging and demanding environments. Inspired by its purpose of delivering Innovation that Matters, By and For People Who Matter, Mercury helps make the world a safer, more secure place for all.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MRCY has been successfully added to your 