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.
Theragenics's Sloan Ratio for the quarter that ended in Jun. 2013 was 1.09%.
As of Jun. 2013, Theragenics has a Sloan Ratio of 1.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Theragenics Sloan Ratio % Historical Data
The historical data trend for Theragenics'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 Theragenics's Sloan Ratio %
For the Medical Devices subindustry, Theragenics'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.
Theragenics's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Theragenics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Theragenics's Sloan Ratio % falls into.
Theragenics 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.
Theragenics's Sloan Ratio for the fiscal year that ended in Dec. 2012 is calculated as
Theragenics's Net Income for the trailing twelve months (TTM) ended in Jun. 2013 was 0.535 (Sep. 2012 ) + -0.246 (Dec. 2012 ) + -0.026 (Mar. 2013 ) + -0.011 (Jun. 2013 ) = €0.25 Mil.
Theragenics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2013 was 3.366 (Sep. 2012 ) + 2.989 (Dec. 2012 ) + -0.214 (Mar. 2013 ) + 3.081 (Jun. 2013 ) = €9.22 Mil.
Theragenics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2013 was -1.517 (Sep. 2012 ) + -0.229 (Dec. 2012 ) + -5.838 (Mar. 2013 ) + -2.271 (Jun. 2013 ) = €-9.86 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.
Theragenics (FRA:THX) 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. 2013, Theragenics has a Sloan Ratio of 1.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Theragenics Sloan Ratio % Related Terms
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Theragenics Corporation is a Delaware Corporation formed in 1981. It is a medical device company serving the surgical products and cancer treatment markets, operate in two business segments; the surgical products segment and the brachytherapy seed segment. The Company's surgical products business manufactures markets and sells disposable devices utilized in certain surgical procedures. Its brachytherapy seed business manufactures markets and sells radioactive 'seeds' utilized in the treatment of early stage prostate cancer. Its surgical products business was built through the acquisitions of CP Medical Corp. in May 2005, Galt Medical Corporation in August 2006, and NeedleTech Products, Inc. in July 2008. The Company manufactures almost 3,500 products in this business as part of three broad product platforms; wound closure, vascular access and specialty needles. It serves a number of markets and applications, including, among other areas, interventional cardiology, interventional radiology, vascular surgery, orthopedics, plastic surgery, dental surgery, urology, veterinary medicine, pain management, endoscopy, and spinal surgery. With the exception of veterinary sutures, its surgical products hold relatively small market shares. Its products include both finished goods and components. The Company's products are sold mainly to original equipment manufacturers and to a network of distributors. The Company's facilities and operations are subject to extensive environmental, nuclear, regulatory and occupational health and safety laws at the federal, state and local levels. It is also subject to similar foreign laws and regulations under certain circumstances when its products are distributed outside of the United States.
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