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.
Datalink's Sloan Ratio for the quarter that ended in Sep. 2016 was -3.35%.
As of Sep. 2016, Datalink has a Sloan Ratio of -3.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Datalink Sloan Ratio % Historical Data
The historical data trend for Datalink'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 Datalink's Sloan Ratio %
For the Computer Hardware subindustry, Datalink'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.
Datalink's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Datalink's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Datalink's Sloan Ratio % falls into.
Datalink 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.
Datalink's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Datalink's Net Income for the trailing twelve months (TTM) ended in Sep. 2016 was 2.738 (Dec. 2015 ) + -0.433 (Mar. 2016 ) + 3.863 (Jun. 2016 ) + 0.546 (Sep. 2016 ) = $6.7 Mil.
Datalink's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2016 was 15.081 (Dec. 2015 ) + 11.235 (Mar. 2016 ) + 4.056 (Jun. 2016 ) + 0.072 (Sep. 2016 ) = $30.4 Mil.
Datalink's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2016 was 4.987 (Dec. 2015 ) + -16.549 (Mar. 2016 ) + 7.934 (Jun. 2016 ) + -3.303 (Sep. 2016 ) = $-6.9 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.
Datalink (NAS:DTLK) 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. 2016, Datalink has a Sloan Ratio of -3.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Datalink Sloan Ratio % Related Terms
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Datalink Corp was incorporated in the State of Minnesota in 1987. It provides solutions and services that make data centers efficient, manageable and responsive to changing business needs. The Company assesses designs, deploys, manages, and offers support unified infrastructures such as servers, storage and networks. It offers full suite of practice-specific consulting, analysis, design, implementation, management, and support services. The Company has a physical laboratory that customers can visit in Minneapolis enabling them to participate in physical demonstrations of a variety of technologies, including: site-to-site replication, data recovery, WAN optimization, de-duplication, and virtual data center architectures. It leverages this lab to test, validate and compare technologies from manufacturers and software developers, perform configuration services, troubleshoot support issues and train its professional and support services teams. It provides around the clock technical support from a team of customer support and field engineers. The Company provides analysis, design, implementation, management and support services to customers through either a stand-alone services engagement or as a part of an overall project that includes a server, storage and networking solutions and services. Its portfolio of solutions and services spans four practices: Consolidation and virtualization; Data storage and protection; and Business continuity and disaster recovery solutions. The Company does not manufacture products, but works with end users to assess their information-storage and retrieval requirements and then designs the solutions. Its customers include computer technology, financial service, insurance, telecommunications, consumer product, Internet, and transportation companies across the United States.
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