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.
Advanced Micro Devices's Sloan Ratio for the quarter that ended in Sep. 2024 was -0.84%.
As of Sep. 2024, Advanced Micro Devices has a Sloan Ratio of -0.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Advanced Micro Devices Sloan Ratio % Historical Data
* 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 Advanced Micro Devices's Sloan Ratio %
For the Semiconductors subindustry, Advanced Micro Devices'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.
Advanced Micro Devices's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Advanced Micro Devices's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Advanced Micro Devices's Sloan Ratio % falls into.
Advanced Micro Devices 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.
Advanced Micro Devices's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Advanced Micro Devices's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 611.639 (Dec. 2023 ) + 113.16 (Mar. 2024 ) + 246.185 (Jun. 2024 ) + 694.671 (Sep. 2024 ) = €1,666 Mil.
Advanced Micro Devices's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 349.377 (Dec. 2023 ) + 479.32 (Mar. 2024 ) + 550.897 (Jun. 2024 ) + 565.828 (Sep. 2024 ) = €1,945 Mil.
Advanced Micro Devices's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 137.55 (Dec. 2023 ) + -124.2 (Mar. 2024 ) + 358.594 (Jun. 2024 ) + -124.338 (Sep. 2024 ) = €248 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.
Advanced Micro Devices (MIL:1AMD) 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, Advanced Micro Devices has a Sloan Ratio of -0.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Advanced Micro Devices Sloan Ratio % Related Terms
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Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers, industrial, and automotive applications. AMD's traditional strength was in central processing units and graphics processing units used in PCs and data centers. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox. In 2022, the firm acquired field-programmable gate array leader Xilinx to diversify its business and augment its opportunities in key end markets such as data center and automotive.
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