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.
Crown ElectroKinetics's Sloan Ratio for the quarter that ended in Mar. 2024 was -173.32%.
Warning Sign:
When sloan ratio (-105.03)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Crown ElectroKinetics has a Sloan Ratio of -173.32%, indicating earnings are more likely to be made up of accruals.
Crown ElectroKinetics Sloan Ratio % Historical Data
The historical data trend for Crown ElectroKinetics'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 Crown ElectroKinetics's Sloan Ratio %
For the Specialty Chemicals subindustry, Crown ElectroKinetics'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.
Crown ElectroKinetics's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Crown ElectroKinetics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Crown ElectroKinetics's Sloan Ratio % falls into.
Crown ElectroKinetics 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.
Crown ElectroKinetics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Crown ElectroKinetics's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -14.519 (Jun. 2023 ) + -2.859 (Sep. 2023 ) + -9.306 (Dec. 2023 ) + -4.612 (Mar. 2024 ) = $-31.30 Mil.
Crown ElectroKinetics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -3.66 (Jun. 2023 ) + -3.421 (Sep. 2023 ) + -4.351 (Dec. 2023 ) + -2.677 (Mar. 2024 ) = $-14.11 Mil.
Crown ElectroKinetics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.271 (Jun. 2023 ) + -0.378 (Sep. 2023 ) + -1.089 (Dec. 2023 ) + -0.063 (Mar. 2024 ) = $-1.80 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.
Crown ElectroKinetics (NAS:CRKN) 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. 2024, Crown ElectroKinetics has a Sloan Ratio of -173.32%, indicating earnings are more likely to be made up of accruals.
Crown ElectroKinetics Sloan Ratio % Related Terms
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Crown ElectroKinetics (Crown ElectroKinetics) Business Description
Crown ElectroKinetics Corp is a provider of DynamicTint. The company's technology allows any glass surface to transition between clear and dark in seconds. DynamicTint allows windows to transition from transparent to black. With applications to a wide array of windows, including commercial buildings, automotive sunroofs, and residential skylights, Crown partners with glass and film manufacturers for mass production and distribution. Its technology is a thin film that is powered by an electrically-charged pigment which not only replaces common window tints but is also a more sustainable alternative to traditional window treatments. The company is supported by a robust patent portfolio.
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