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 Jan. 2024, Sigmatron International has a Sloan Ratio of 7.17%, indicating the company is in the safe zone and there is no funny business with accruals.
Sigmatron International 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 Sigmatron International's Sloan Ratio %
For the Electronic Components subindustry, Sigmatron International'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.
Sigmatron International's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Sigmatron International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sigmatron International's Sloan Ratio % falls into.
Sigmatron International 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.
Sigmatron International's Sloan Ratio for the fiscal year that ended in Apr. 2023 is calculated as
Sigmatron International's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 0.254 (Apr. 2023 ) + 0.262 (Jul. 2023 ) + 0.028 (Oct. 2023 ) + 0.599 (Jan. 2024 ) = $1.1 Mil.
Sigmatron International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -27.641 (Apr. 2023 ) + 7.75 (Jul. 2023 ) + 8.017 (Oct. 2023 ) + 1.071 (Jan. 2024 ) = $-10.8 Mil.
Sigmatron International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -3.847 (Apr. 2023 ) + -0.622 (Jul. 2023 ) + 0.217 (Oct. 2023 ) + -1.267 (Jan. 2024 ) = $-5.5 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.
Sigmatron International (NAS:SGMA) 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 Jan. 2024, Sigmatron International has a Sloan Ratio of 7.17%, indicating the company is in the safe zone and there is no funny business with accruals.
Sigmatron International Sloan Ratio % Related Terms
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Sigmatron International (Sigmatron International) Business Description
Sigmatron International Inc is an independent provider of electronic manufacturing services (EMS). It provides printed circuit board assemblies and completely assembled electronic products. In addition, it also provides automatic and manual assembly and testing of products; material sourcing and procurement; manufacturing and test engineering support; warehousing and distribution services. The company primarily serves the industrial electronics, consumer electronics, and medical sciences industries. It has two reportable segments as an independent provider of electronic manufacturing services ("EMS") and as a provider of products to pet technology ("Pet Tech"). Geographically, it derives a majority of its revenue from Mexico and also has a presence in China and Vietnam.
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