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.
Chime Communications's Sloan Ratio for the quarter that ended in Jun. 2015 was 1.04%.
As of Jun. 2015, Chime Communications has a Sloan Ratio of 1.04%, indicating the company is in the safe zone and there is no funny business with accruals.
Chime Communications Sloan Ratio % Historical Data
The historical data trend for Chime Communications'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 Chime Communications's Sloan Ratio %
For the Advertising Agencies subindustry, Chime Communications'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.
Chime Communications's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Chime Communications's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chime Communications's Sloan Ratio % falls into.
Chime Communications 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.
Chime Communications's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Chime Communications's Net Income for the trailing twelve months (TTM) ended in Jun. 2015 was 6.687 (Dec. 2014 ) + -2.269 (Jun. 2015 ) = $4.4 Mil.
Chime Communications's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 6.685 (Dec. 2014 ) + 15.227 (Jun. 2015 ) = $21.9 Mil.
Chime Communications's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2015 was -12.746 (Dec. 2014 ) + -11.217 (Jun. 2015 ) = $-24.0 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.
Chime Communications (OTCPK:CICPF) 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. 2015, Chime Communications has a Sloan Ratio of 1.04%, indicating the company is in the safe zone and there is no funny business with accruals.
Chime Communications Sloan Ratio % Related Terms
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Chime Communications (Chime Communications) Business Description
Chime Communications PLC was incorporated in the United Kingdom on January 29, 1986. The Company provides advertising, sports marketing, market research, direct marketing, design and event management consultancy. Its business segments are Sport & Entertainment, Advertising and Marketing Services (AMS), Healthcare, and Insight & Engagement. In sport & entertainment segment CSM Sport & Entertainment works with brands, rights holders, governing bodies, governments and athletes across the globe, CSM specialises in strategic consultancy, rights sales, sponsorship activation, hospitality, branding and wayfinding, athlete management and communications across sporting events. The advertising and marketing services division includes the VCCP Partnership and the Chime Specialist Group. VCCP operates in advertising and marketing services, direct marketing, digital communication, search relations, point of sale, sales promotion, data consultancy and technical design, multimedia content, youth marketing and experiential, marketing consulting, retail and shopper marketing and specialist media planning and buying. The Specialist Group includes agencies operating in niche markets; corporate responsibility and sustainability consultancy; for technology brands; providing customer reference and advocacy and; in professional and financial services. The insight and engagement division brings together researchers, technologists and insight specialists who deliver to clients, in real time, actionable solutions. The division has particular expertise in delivering clients in FMCG, financial services, utilities and retail with experience performance improvement plans, mystery shopping programmes and advertising and brand tracking. The Insight & Engagement division includes specialist brands such as Watermelon - a specialist digital agency, Cherry Picked - a specialist recruitment agency, Facts International - a specialist fieldwork agency and full service agencies Opinion Leader and CIE. In healthcare segment OPEN Health is a healthcare communications and market access group. It comprises ten different specialist businesses that bring a breadth of expertise focused principally on pharma, health device and diagnostic clients. OPEN Health's companies cover aspects of the communications mix including advertising, PR, medical communications, market access consulting, real world data collection, market research and patient engagement programmes.
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