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.
The Spectranetics's Sloan Ratio for the quarter that ended in Jun. 2017 was -6.17%.
As of Jun. 2017, The Spectranetics has a Sloan Ratio of -6.17%, indicating the company is in the safe zone and there is no funny business with accruals.
The Spectranetics Sloan Ratio % Historical Data
The historical data trend for The Spectranetics'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 The Spectranetics's Sloan Ratio %
For the Medical Devices subindustry, The Spectranetics'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.
The Spectranetics's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, The Spectranetics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Spectranetics's Sloan Ratio % falls into.
The Spectranetics 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.
The Spectranetics's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
The Spectranetics's Net Income for the trailing twelve months (TTM) ended in Jun. 2017 was -13.312 (Sep. 2016 ) + -12.611 (Dec. 2016 ) + -18.524 (Mar. 2017 ) + -24.604 (Jun. 2017 ) = $-69.1 Mil.
The Spectranetics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2017 was -5.878 (Sep. 2016 ) + -4.238 (Dec. 2016 ) + -14.086 (Mar. 2017 ) + -12.874 (Jun. 2017 ) = $-37.1 Mil.
The Spectranetics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2017 was -1.131 (Sep. 2016 ) + -1.489 (Dec. 2016 ) + -1.711 (Mar. 2017 ) + -0.895 (Jun. 2017 ) = $-5.2 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.
The Spectranetics (NAS:SPNC) 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 Jun. 2017, The Spectranetics has a Sloan Ratio of -6.17%, indicating the company is in the safe zone and there is no funny business with accruals.
The Spectranetics Sloan Ratio % Related Terms
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The Spectranetics (The Spectranetics) Business Description
Spectranetics manufactures and sells single-use medical devices used in minimally invasive cardiovascular procedures. The firm operates in the three categories: vascular intervention, lead management, and laser, service, and other. The vascular intervention business contributes the majority of revenue and sells laser and aspiration catheters, balloon catheters, and support catheters. The lead management business sells devices used to remove pacemaker and defibrillator cardiac leads. The laser, service, and other business includes a laser system for cardiovascular procedures. Spectranetics generates the vast majority of its revenue in the United States.
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