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.
Iveda Solutions's Sloan Ratio for the quarter that ended in Jun. 2024 was 38.62%.
As of Jun. 2024, Iveda Solutions has a Sloan Ratio of 38.62%, indicating there is a warning stage of accrual build up.
Iveda Solutions Sloan Ratio % Historical Data
The historical data trend for Iveda Solutions'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 Iveda Solutions's Sloan Ratio %
For the Security & Protection Services subindustry, Iveda Solutions'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.
Iveda Solutions's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Iveda Solutions's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Iveda Solutions's Sloan Ratio % falls into.
Iveda Solutions 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.
Iveda Solutions's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Iveda Solutions's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -0.829 (Sep. 2023 ) + -1.099 (Dec. 2023 ) + -1.108 (Mar. 2024 ) + -0.494 (Jun. 2024 ) = $-3.53 Mil.
Iveda Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was -2.656 (Sep. 2023 ) + -0.739 (Dec. 2023 ) + -1.112 (Mar. 2024 ) + -0.892 (Jun. 2024 ) = $-5.40 Mil.
Iveda Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -0.198 (Sep. 2023 ) + -0.24 (Dec. 2023 ) + -0.188 (Mar. 2024 ) + -0.114 (Jun. 2024 ) = $-0.74 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.
Iveda Solutions (NAS:IVDAW) 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. 2024, Iveda Solutions has a Sloan Ratio of 38.62%, indicating there is a warning stage of accrual build up.
Iveda Solutions Sloan Ratio % Related Terms
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Iveda Solutions Inc is engaged in offering real-time IP video surveillance technologies. The company provides IoT sensors and devices for various applications such as energy management, smart homes, smart buildings, smart communities, and patients and eldercare. Its IvedaAI provides AI functions to IP cameras and network video recorders and video management systems. The group has a business presence in the U.S. and the Republic of China (Taiwan), from which key revenue is derived from the Republic of China (Taiwan).
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