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.
As of Oct. 2015, OmniVision Technologies has a Sloan Ratio of -2.46%, indicating the company is in the safe zone and there is no funny business with accruals.
OmniVision Technologies Sloan Ratio % Historical Data
* 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 OmniVision Technologies's Sloan Ratio %
For the Semiconductors subindustry, OmniVision Technologies'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.
OmniVision Technologies's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, OmniVision Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where OmniVision Technologies's Sloan Ratio % falls into.
OmniVision Technologies 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.
OmniVision Technologies's Sloan Ratio for the fiscal year that ended in Apr. 2015 is calculated as
OmniVision Technologies's Net Income for the trailing twelve months (TTM) ended in Oct. 2015 was 14.023 (Jan. 2015 ) + 5.996 (Apr. 2015 ) + 18.242 (Jul. 2015 ) + 13.946 (Oct. 2015 ) = $52 Mil.
OmniVision Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2015 was -11.699 (Jan. 2015 ) + 13.232 (Apr. 2015 ) + 72.235 (Jul. 2015 ) + 23.161 (Oct. 2015 ) = $97 Mil.
OmniVision Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2015 was 4.241 (Jan. 2015 ) + -2.439 (Apr. 2015 ) + 38.069 (Jul. 2015 ) + -47.761 (Oct. 2015 ) = $-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.
OmniVision Technologies (NAS:OVTI) 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 Oct. 2015, OmniVision Technologies has a Sloan Ratio of -2.46%, indicating the company is in the safe zone and there is no funny business with accruals.
OmniVision Technologies Sloan Ratio % Related Terms
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OmniVision Technologies (OmniVision Technologies) Business Description
OmniVision Technologies Inc is a Delaware corporation, incorporated in May 1995 in California, and reincorporated in Delaware in March 2000. The Company designs, develops and markets high-performance, highly integrated and cost-efficient semiconductor image-sensor devices. Its products include image-sensing devices namely CameraChip image sensors. Its image sensors capture an image electronically and are used in a number of consumer and commercial mass-market applications. Its CameraChip image sensors are manufactured using the complementary metal oxide semiconductor, or CMOS, fabrication process and are predominantly single-chip solutions that integrate several distinct functions including image capture, image processing, color processing, signal conversion and output of a fully processed image or video stream. It sells directly to OEMs and VARs and indirectly through distributors. OEMs include branded camera device manufacturers and contract manufacturers. The Company sells its products through a direct sales force and indirectly through distributors. It relies on a combination of patents, copyrights, trademarks and trade secrets, as well as nondisclosure agreements and other methods, to protect various aspects of its CameraChip and CameraCubeChip image sensors. Its competitors include ON Semiconductor, Samsung, Sharp, Sony, STMicroelectronics and Toshiba.
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