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.
Teledyne Technologies's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.65%.
As of Dec. 2023, Teledyne Technologies has a Sloan Ratio of 1.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Teledyne Technologies Sloan Ratio % Historical Data
The historical data trend for Teledyne Technologies'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 Teledyne Technologies's Sloan Ratio %
For the Scientific & Technical Instruments subindustry, Teledyne 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.
Teledyne Technologies's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Teledyne Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Teledyne Technologies's Sloan Ratio % falls into.
Teledyne 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.
Teledyne Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Teledyne Technologies's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 178.7 (Mar. 2023 ) + 185.3 (Jun. 2023 ) + 198.6 (Sep. 2023 ) + 323.1 (Dec. 2023 ) = $886 Mil.
Teledyne Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 203 (Mar. 2023 ) + 190.5 (Jun. 2023 ) + 278.2 (Sep. 2023 ) + 164.4 (Dec. 2023 ) = $836 Mil.
Teledyne Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -76.9 (Mar. 2023 ) + -27.6 (Jun. 2023 ) + -22.8 (Sep. 2023 ) + -63 (Dec. 2023 ) = $-190 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.
Teledyne Technologies (NYSE:TDY) 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, Teledyne Technologies has a Sloan Ratio of 1.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Teledyne Technologies Sloan Ratio % Related Terms
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Teledyne Technologies (Teledyne Technologies) Business Description
Teledyne Technologies Inc sells technologies for industrial markets. Roughly a fourth of Teledyne's revenue comes from contracts with the United States government. The firm operates in four segments: instrumentation, digital imaging, aerospace and defense electronics, and engineered systems. The instrumentation segment provides monitoring instruments primarily for marine and environmental applications. The digital imaging segment contributes the largest proportion of revenue, and includes image sensors and cameras for industrial, government, and medical customers. The aerospace and defense electronics segment provides electronic components and communication products for aircraft. The engineered systems segment provides solutions for defense, space, environmental, and energy applications.
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