NVIDIA (LIM:NVDA) Sloan Ratio % : 24.42% (As of Oct. 2024)

NVIDIA Sloan Ratio % Chart

NVIDIA Annual Data
	Trend	Jan15	Jan16	Jan17	Jan18	Jan19	Jan20	Jan21	Jan22	Jan23	Jan24
Sloan Ratio %		Get a 7-Day Free Trial					-46.84	63.16	23.70	-21.00	18.62

NVIDIA Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Sloan Ratio %	Get a 7-Day Free Trial															8.33	18.61	22.69	26.40	24.42

Competitive Comparison of NVIDIA's Sloan Ratio %

For the Semiconductors subindustry, NVIDIA'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.

NVIDIA's Sloan Ratio % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, NVIDIA's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where NVIDIA's Sloan Ratio % falls into.

NVIDIA 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.

NVIDIA's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as

NVIDIA's Sloan Ratio for the quarter that ended in Oct. 2024 is calculated as

NVIDIA's Net Income for the trailing twelve months (TTM) ended in Oct. 2024 was 12285 (Jan. 2024 ) + 14881 (Apr. 2024 ) + 16599 (Jul. 2024 ) + 19309 (Oct. 2024 ) = $63,074 Mil.
NVIDIA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2024 was 11499 (Jan. 2024 ) + 15345 (Apr. 2024 ) + 14488 (Jul. 2024 ) + 17627 (Oct. 2024 ) = $58,959 Mil.
NVIDIA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2024 was -6109 (Jan. 2024 ) + -5693 (Apr. 2024 ) + -3184 (Jul. 2024 ) + -4346 (Oct. 2024 ) = $-19,332 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.

NVIDIA  (LIM:NVDA) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Oct. 2024, NVIDIA has a Sloan Ratio of 24.42%, indicating there is a warning stage of accrual build up.

NVIDIA Sloan Ratio % Related Terms

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