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.
Vonage Holdings's Sloan Ratio for the quarter that ended in Mar. 2022 was -9.18%.
As of Mar. 2022, Vonage Holdings has a Sloan Ratio of -9.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Vonage Holdings Sloan Ratio % Historical Data
The historical data trend for Vonage Holdings'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 Vonage Holdings's Sloan Ratio %
For the Telecom Services subindustry, Vonage Holdings'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.
Vonage Holdings's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Vonage Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Vonage Holdings's Sloan Ratio % falls into.
Vonage Holdings 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.
Vonage Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
Vonage Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2022 was 0.062 (Jun. 2021 ) + -2.032 (Sep. 2021 ) + -22.151 (Dec. 2021 ) + -17.122 (Mar. 2022 ) = $-41 Mil.
Vonage Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2022 was 42.203 (Jun. 2021 ) + 43.886 (Sep. 2021 ) + 25.304 (Dec. 2021 ) + 40.871 (Mar. 2022 ) = $152 Mil.
Vonage Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2022 was -12.736 (Jun. 2021 ) + -12.768 (Sep. 2021 ) + -20.735 (Dec. 2021 ) + -20.417 (Mar. 2022 ) = $-67 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.
Vonage Holdings (NAS:VG) 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 Mar. 2022, Vonage Holdings has a Sloan Ratio of -9.18%, indicating the company is in the safe zone and there is no funny business with accruals.
Vonage Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Vonage Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Vonage Holdings (Vonage Holdings) Business Description
Vonage Holdings Corp is a North American technology company that provides cloud communication services to businesses and consumers. For businesses, the company provides unified communications (as a service), which consists of integrated voice, text, video, data, and mobile applications over Voice over Internet Protocol network. Its reportable operating segments include Vonage Communications Platform and Consumer. For consumer service customers, there is a home telephone replacement service. This can include services such as voicemail, call waiting, and call forwarding. This service is delivered over the Internet. The company generates most of its revenue within the United States.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
VG has been successfully added to your 