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.
FalconStor Software's Sloan Ratio for the quarter that ended in Jun. 2023 was 0.00%.
As of Jun. 2023, FalconStor Software has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
FalconStor Software Sloan Ratio % Historical Data
The historical data trend for FalconStor Software'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 FalconStor Software's Sloan Ratio %
For the Software - Application subindustry, FalconStor Software'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.
FalconStor Software's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, FalconStor Software's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where FalconStor Software's Sloan Ratio % falls into.
FalconStor Software 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.
FalconStor Software's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
FalconStor Software's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was 0.221 (Sep. 2022 ) + 0.02 (Dec. 2022 ) + -0.448 (Mar. 2023 ) + -0.457 (Jun. 2023 ) = $-0.66 Mil.
FalconStor Software's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was -0.108 (Sep. 2022 ) + 0.219 (Dec. 2022 ) + -0.088 (Mar. 2023 ) + -0.47 (Jun. 2023 ) = $-0.45 Mil.
FalconStor Software's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was 0 (Sep. 2022 ) + 0 (Dec. 2022 ) + -0.003 (Mar. 2023 ) + 0 (Jun. 2023 ) = $-0.00 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.
FalconStor Software (OTCPK:FALC) 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. 2023, FalconStor Software has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
FalconStor Software Sloan Ratio % Related Terms
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FalconStor Software (FalconStor Software) Business Description
FalconStor Software Inc operates in the trusted data protection software industry. The company enables enterprise customers and managed service providers to secure, migrate, and protect their data while reducing data storage and long-term retention costs. The products are offered through and supported by a worldwide network of managed service providers, systems integrators, resellers, and original equipment manufacturers. It's software products create investment protection, flexibility, and leverage of modern cloud-based technologies, through software-defined functionality that provides backup and long-term retention, and business continuity driven data replication. The company's geographical markets are the Americas, Asia Pacific, Europe, Middle East, Africa and Others.
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