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.
Microwave Filter Co's Sloan Ratio for the quarter that ended in Jun. 2019 was 0.00%.
As of Jun. 2019, Microwave Filter Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Microwave Filter Co Sloan Ratio % Historical Data
The historical data trend for Microwave Filter Co'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 Microwave Filter Co's Sloan Ratio %
For the Communication Equipment subindustry, Microwave Filter Co'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.
Microwave Filter Co's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Microwave Filter Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Microwave Filter Co's Sloan Ratio % falls into.
Microwave Filter Co 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.
Microwave Filter Co's Sloan Ratio for the fiscal year that ended in Sep. 2018 is calculated as
Microwave Filter Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2019 was 0.119 (Sep. 2018 ) + -0.06 (Dec. 2018 ) + 0.085 (Mar. 2019 ) + -0.012 (Jun. 2019 ) = $0.13 Mil.
Microwave Filter Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2019 was 0.136 (Sep. 2018 ) + -0.01 (Dec. 2018 ) + 0.05 (Mar. 2019 ) + -0.077 (Jun. 2019 ) = $0.10 Mil.
Microwave Filter Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2019 was 0 (Sep. 2018 ) + -0.059 (Dec. 2018 ) + -0.002 (Mar. 2019 ) + 0 (Jun. 2019 ) = $-0.06 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.
Microwave Filter Co (OTCPK:MFCO) 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. 2019, Microwave Filter Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Microwave Filter Co Sloan Ratio % Related Terms
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Microwave Filter Co (Microwave Filter Co) Business Description
Microwave Filter Co Inc operates in the United States and principally in one Industry. The Company extends credit to business customers, including original equipment manufacturers (OEMs), distributors and other end users, based upon ongoing credit evaluations. MFC designs, develops, manufactures and sells electronic filters, both for radio and microwave frequencies, to help process signal distribution and to prevent unwanted signals from disrupting transmit or receive operations. Markets served include 5G, cable television, television and radio broadcast, satellite broadcast, mobile radio and commercial and defense electronics.
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