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.
Dolby Laboratories's Sloan Ratio for the quarter that ended in Sep. 2024 was 7.10%.
As of Sep. 2024, Dolby Laboratories has a Sloan Ratio of 7.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Dolby Laboratories Sloan Ratio % Historical Data
The historical data trend for Dolby Laboratories'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 Dolby Laboratories's Sloan Ratio %
For the Specialty Business Services subindustry, Dolby Laboratories'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.
Dolby Laboratories's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Dolby Laboratories's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dolby Laboratories's Sloan Ratio % falls into.
Dolby Laboratories 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.
Dolby Laboratories's Sloan Ratio for the fiscal year that ended in Sep. 2024 is calculated as
Dolby Laboratories's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 66.981 (Dec. 2023 ) + 97.83 (Mar. 2024 ) + 38.444 (Jun. 2024 ) + 58.57 (Sep. 2024 ) = $262 Mil.
Dolby Laboratories's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 8.409 (Dec. 2023 ) + 181.409 (Mar. 2024 ) + 21.264 (Jun. 2024 ) + 116.17 (Sep. 2024 ) = $327 Mil.
Dolby Laboratories's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0.633 (Dec. 2023 ) + -17.873 (Mar. 2024 ) + -7.744 (Jun. 2024 ) + -261.308 (Sep. 2024 ) = $-286 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.
Dolby Laboratories (NYSE:DLB) 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 Sep. 2024, Dolby Laboratories has a Sloan Ratio of 7.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Dolby Laboratories Sloan Ratio % Related Terms
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Dolby Laboratories Inc develops audio and surround sound for cinema, broadcast, home audio systems, in-car entertainment systems, DVD players, games, televisions, and personal computers. The company designs and manufactures audio, imaging, accessibility, and other hardware and software solutions for the cinema, with occasional applications in the television, broadcast, and live entertainment industries. The company operates in the United States and internationally.
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