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.
Telestone Technologies's Sloan Ratio for the quarter that ended in Dec. 2012 was -7.09%.
As of Dec. 2012, Telestone Technologies has a Sloan Ratio of -7.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Telestone 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 Telestone Technologies's Sloan Ratio %
For the Communication Equipment subindustry, Telestone 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.
Telestone Technologies's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Telestone Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Telestone Technologies's Sloan Ratio % falls into.
Telestone 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.
Telestone Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2012 is calculated as
Telestone Technologies's Net Income for the trailing twelve months (TTM) ended in Dec. 2012 was 0.479 (Mar. 2012 ) + -1.314 (Jun. 2012 ) + -13.059 (Sep. 2012 ) + -10.551 (Dec. 2012 ) = $-24.45 Mil.
Telestone Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2012 was -6.558 (Mar. 2012 ) + -0.969 (Jun. 2012 ) + 1.445 (Sep. 2012 ) + 5.09 (Dec. 2012 ) = $-0.99 Mil.
Telestone Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2012 was -0.265 (Mar. 2012 ) + -0.11 (Jun. 2012 ) + -0.076 (Sep. 2012 ) + -3.945 (Dec. 2012 ) = $-4.40 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.
Telestone Technologies (OTCPK:TSTC) 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. 2012, Telestone Technologies has a Sloan Ratio of -7.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Telestone Technologies Sloan Ratio % Related Terms
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Telestone Technologies (Telestone Technologies) Business Description
Telestone Technologies Corp was organized under the laws of the State of Colorado in February 1987 under the name Shield Enterprises, Inc. In August 2004, TSTC reincorporated in the State of Delaware under the name Telestone Technologies Corporation. It provides access network solutions in China. The company's access network solutions include the research and development and application of access-network technology. In addition to its homegrown access-network equipment, which includes repeaters, antennas, and radio-frequency peripherals, the company offers project design, project management, installation, maintenance, and other after sales services to its customers. The company offers WFDS, a next generation wireless distribution system. WFDS is an all-optical network that combines the technologies of both wireless and optical telecommunications. As of December 31, 2011, it completed 499 WFDS installations. The company designs and sells electronic equipment used to provide access-network solutions to its customers. Many of these types of equipment, including WFDS products, RFPA products, passive components and base station antennas for 2G, 3G, Broadband access and CATV networks, are specialized active microwave components designed to meet the needs of its customers.The company provides systems integration services to its customers. The primary systems integration services provided to the company's customers are project design and engineering, specifically, the development and design of indoor and outdoor wireless signal complementary coverage solutions and their applied products. The company also markets its products to 29 countries, including the United States, Vietnam, Mexico, Brazil, Russia, India, the Philippines, Thailand, Ireland, Ecuador, Mongolia, South Africa, Turkey, Indonesia, Colombia, Costa Rica, Argentina, Ukraine, Kazakhstan, Singapore, South Korea, Hong Kong, Saudi Arabia, New Zealand, Bangladesh, the United Arab Emirates, Canada, and Iceland.
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