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ADGL (AllDigital Holdings) Sloan Ratio % : -36.78% (As of Sep. 2015)


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What is AllDigital Holdings Sloan Ratio %?

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.

AllDigital Holdings's Sloan Ratio for the quarter that ended in Sep. 2015 was -36.78%.

As of Sep. 2015, AllDigital Holdings has a Sloan Ratio of -36.78%, indicating there is a warning stage of accrual build up.


AllDigital Holdings Sloan Ratio % Historical Data

The historical data trend for AllDigital 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.

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AllDigital Holdings Sloan Ratio % Chart

AllDigital Holdings Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Sloan Ratio %
Get a 7-Day Free Trial - -90.16 -83.44 4.90 6.96

AllDigital Holdings Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 67.12 6.96 -4.50 -18.97 -36.78

Competitive Comparison of AllDigital Holdings's Sloan Ratio %

For the Software - Application subindustry, AllDigital 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.


AllDigital Holdings's Sloan Ratio % Distribution in the Software Industry

For the Software industry and Technology sector, AllDigital Holdings's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where AllDigital Holdings's Sloan Ratio % falls into.



AllDigital 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.

AllDigital Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2014 )-Cash Flow from Operations (A: Dec. 2014 )
-Cash Flow from Investing (A: Dec. 2014 ))/Total Assets (A: Dec. 2014 )
=(-1.859--1.52
--0.442)/1.479
=6.96%

AllDigital Holdings's Sloan Ratio for the quarter that ended in Sep. 2015 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2015 )
=(-1.899--0.888
--0.453)/1.517
=-36.78%

AllDigital Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2015 was -0.289 (Dec. 2014 ) + -0.391 (Mar. 2015 ) + -0.557 (Jun. 2015 ) + -0.662 (Sep. 2015 ) = $-1.90 Mil.
AllDigital Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 0.007 (Dec. 2014 ) + -0.204 (Mar. 2015 ) + -0.284 (Jun. 2015 ) + -0.407 (Sep. 2015 ) = $-0.89 Mil.
AllDigital Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2015 was -0.407 (Dec. 2014 ) + -0.016 (Mar. 2015 ) + 0.008 (Jun. 2015 ) + -0.038 (Sep. 2015 ) = $-0.45 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.


AllDigital Holdings  (GREY:ADGL) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Sep. 2015, AllDigital Holdings has a Sloan Ratio of -36.78%, indicating there is a warning stage of accrual build up.


AllDigital Holdings Sloan Ratio % Related Terms

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AllDigital Holdings Business Description

Traded in Other Exchanges
N/A
Address
6 Hughes, Suite 200, Irvine, CA, USA, 92618
AllDigital Holdings Inc is a United States based company. It is a SaaS company and the developer of Brevity. It engineers software and hardware-based digital broadcasting solutions. Brevity is a grade solution for moving large video files. AllDigital develops these technology segment; AllDigital Brevity API, AllDigital white paper, video transcoding software, video compression software. The company mainly operates in managed file transfer and transcoding market. It also provides network acceleration services such as Aspera, Signiant or workflow and encoding Services.

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