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.
Axon Enterprise's Sloan Ratio for the quarter that ended in Sep. 2024 was -0.15%.
As of Sep. 2024, Axon Enterprise has a Sloan Ratio of -0.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Axon Enterprise Sloan Ratio % Historical Data
The historical data trend for Axon Enterprise'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 Axon Enterprise's Sloan Ratio %
For the Aerospace & Defense subindustry, Axon Enterprise'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.
Axon Enterprise's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Axon Enterprise's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Axon Enterprise's Sloan Ratio % falls into.
Axon Enterprise 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.
Axon Enterprise's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Axon Enterprise's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 55.505 (Dec. 2023 ) + 133.218 (Mar. 2024 ) + 40.797 (Jun. 2024 ) + 67.025 (Sep. 2024 ) = $297 Mil.
Axon Enterprise's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 140.038 (Dec. 2023 ) + -15.938 (Mar. 2024 ) + 82.763 (Jun. 2024 ) + 91.321 (Sep. 2024 ) = $298 Mil.
Axon Enterprise's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 53.173 (Dec. 2023 ) + -174.044 (Mar. 2024 ) + 82.139 (Jun. 2024 ) + 43.071 (Sep. 2024 ) = $4 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.
Axon Enterprise (LTS:0HKE) 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. 2024, Axon Enterprise has a Sloan Ratio of -0.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Axon Enterprise Sloan Ratio % Related Terms
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Axon Enterprise Inc develops, manufactures, and sells conducted energy devices and cloud-based digital evidence management software designed for use by law enforcement, corrections, military forces, private security personnel, and private individuals for personal defense. The company operates in two segments: Taser and software & sensors. Taser develops and sells CEDs used for protecting users and virtual reality training. Software and sensors manufacture fully integrated hardware and cloud-based software solutions such as body cameras, automated license plate reading, and digital evidence management systems. Axon delivers its products worldwide and derives the majority of its revenue from the software & sensors segment and geographically from the United States.
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