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.
MACOM Technology Solutions Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -5.86%.
As of Dec. 2023, MACOM Technology Solutions Holdings has a Sloan Ratio of -5.86%, indicating the company is in the safe zone and there is no funny business with accruals.
MACOM Technology Solutions Holdings Sloan Ratio % Historical Data
The historical data trend for MACOM Technology Solutions Holdings'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.
For the Semiconductors subindustry, MACOM Technology Solutions Holdings'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.
MACOM Technology Solutions Holdings Sloan Ratio % Distribution
For the Semiconductors industry and Technology sector, MACOM Technology Solutions Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where MACOM Technology Solutions Holdings's Sloan Ratio % falls into.
MACOM Technology Solutions Holdings 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.
MACOM Technology Solutions Holdings's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
MACOM Technology Solutions Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 25.755 (Mar. 2023 ) + 11.853 (Jun. 2023 ) + 24.45 (Sep. 2023 ) + 12.526 (Dec. 2023 ) = $74.6 Mil.
MACOM Technology Solutions Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 32.474 (Mar. 2023 ) + 45.816 (Jun. 2023 ) + 50.354 (Sep. 2023 ) + 33.099 (Dec. 2023 ) = $161.7 Mil.
MACOM Technology Solutions Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -17.022 (Mar. 2023 ) + -62.389 (Jun. 2023 ) + 123.702 (Sep. 2023 ) + -34.774 (Dec. 2023 ) = $9.5 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.
MACOM Technology Solutions Holdings (NAS:MTSI) 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, MACOM Technology Solutions Holdings has a Sloan Ratio of -5.86%, indicating the company is in the safe zone and there is no funny business with accruals.
MACOM Technology Solutions Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of MACOM Technology Solutions Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
MACOM Technology Solutions Holdings (MACOM Technology Solutions Holdings) Business Description
MACOM Technology Solutions Holdings Inc is a provider of analog, digital and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems. Roughly a third of the firm's revenue is generated in the United States, with the rest coming from China, Taiwan, and other countries across the world.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MTSI has been successfully added to your 