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.
Realtek Semiconductor's Sloan Ratio for the quarter that ended in Mar. 2024 was -13.41%.
As of Mar. 2024, Realtek Semiconductor has a Sloan Ratio of -13.41%, indicating there is a warning stage of accrual build up.
Realtek Semiconductor Sloan Ratio % Historical Data
The historical data trend for Realtek Semiconductor'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 Realtek Semiconductor's Sloan Ratio %
For the Semiconductors subindustry, Realtek Semiconductor'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.
Realtek Semiconductor's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Realtek Semiconductor's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Realtek Semiconductor's Sloan Ratio % falls into.
Realtek Semiconductor 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.
Realtek Semiconductor's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Realtek Semiconductor's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 84.532 (Jun. 2023 ) + 80.264 (Sep. 2023 ) + 69.772 (Dec. 2023 ) + 98.746 (Mar. 2024 ) = $333 Mil.
Realtek Semiconductor's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 168.729 (Jun. 2023 ) + 215.167 (Sep. 2023 ) + 156.828 (Dec. 2023 ) + 139.444 (Mar. 2024 ) = $680 Mil.
Realtek Semiconductor's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 58.48 (Jun. 2023 ) + 34.502 (Sep. 2023 ) + 74.293 (Dec. 2023 ) + -91.047 (Mar. 2024 ) = $76 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.
Realtek Semiconductor (LUX:RTKSM) 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 Mar. 2024, Realtek Semiconductor has a Sloan Ratio of -13.41%, indicating there is a warning stage of accrual build up.
Realtek Semiconductor Sloan Ratio % Related Terms
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Realtek Semiconductor (LUX:RTKSM) Business Description
Realtek Semiconductor Corp provides a range of integrated circuits (ICs) for communications networks, computer peripheral, and multimedia markets. The company is a fabless designer and supplier of its ICs, which means it outsources the fabrication of devices. Its complete product line includes data, voice, and image ICs. Realtek offers its product and services to PC companies, motherboard manufacturers, network hardware makers, and various PC peripheral product companies. Core technologies are advanced through high-performance analog and mixed-signal circuit design capabilities, in addition to in-house knowledge in IC manufacturing and intellectual properties.
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