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.
Creative Realities's Sloan Ratio for the quarter that ended in Dec. 2023 was -5.76%.
As of Dec. 2023, Creative Realities has a Sloan Ratio of -5.76%, indicating the company is in the safe zone and there is no funny business with accruals.
Creative Realities Sloan Ratio % Historical Data
The historical data trend for Creative Realities'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 Creative Realities's Sloan Ratio %
For the Software - Application subindustry, Creative Realities'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.
Creative Realities's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Creative Realities's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Creative Realities's Sloan Ratio % falls into.
Creative Realities 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.
Creative Realities's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Creative Realities's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -1 (Mar. 2023 ) + -1.425 (Jun. 2023 ) + -1.931 (Sep. 2023 ) + 1.419 (Dec. 2023 ) = $-2.94 Mil.
Creative Realities's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3.868 (Mar. 2023 ) + 2.476 (Jun. 2023 ) + 1.962 (Sep. 2023 ) + -3.139 (Dec. 2023 ) = $5.17 Mil.
Creative Realities's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.034 (Mar. 2023 ) + -1.169 (Jun. 2023 ) + -0.935 (Sep. 2023 ) + -0.889 (Dec. 2023 ) = $-4.03 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.
Creative Realities (NAS:CREX) 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, Creative Realities has a Sloan Ratio of -5.76%, indicating the company is in the safe zone and there is no funny business with accruals.
Creative Realities Sloan Ratio % Related Terms
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Creative Realities (Creative Realities) Business Description
Creative Realities Inc, along with its subsidiaries, is engaged in providing innovative digital marketing technology & solutions to global retail companies, luxury and other individual retail brands, advertising networks, outdoor clients, enterprises, and other organizations. The Company operates in one reportable segment being marketing technology solutions .The company provides solutions related to digital merchandising systems, omnichannel customer engagement systems, interactive digital shopping assistants, advisors and kiosks, and high-end audio-visual networks along with marketing technologies such as mobile, social media, point-of-sale transactions, beaconing, and web-based media.
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