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.
NTELOS Holdings's Sloan Ratio for the quarter that ended in Dec. 2015 was -2.84%.
As of Dec. 2015, NTELOS Holdings has a Sloan Ratio of -2.84%, indicating the company is in the safe zone and there is no funny business with accruals.
NTELOS Holdings Sloan Ratio % Historical Data
The historical data trend for NTELOS Holdings'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 NTELOS Holdings's Sloan Ratio %
For the Telecom Services subindustry, NTELOS Holdings'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.
NTELOS Holdings's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, NTELOS Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where NTELOS Holdings's Sloan Ratio % falls into.
NTELOS Holdings 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.
NTELOS Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
NTELOS Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was 14.796 (Mar. 2015 ) + 1.61 (Jun. 2015 ) + -8.963 (Sep. 2015 ) + -19.649 (Dec. 2015 ) = $-12.2 Mil.
NTELOS Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 15.438 (Mar. 2015 ) + 9.202 (Jun. 2015 ) + -6.037 (Sep. 2015 ) + -14.452 (Dec. 2015 ) = $4.2 Mil.
NTELOS Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was 15.855 (Mar. 2015 ) + 33.67 (Jun. 2015 ) + -27.833 (Sep. 2015 ) + -19.81 (Dec. 2015 ) = $1.9 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.
NTELOS Holdings (NAS:NTLS) 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 Dec. 2015, NTELOS Holdings has a Sloan Ratio of -2.84%, indicating the company is in the safe zone and there is no funny business with accruals.
NTELOS Holdings Sloan Ratio % Related Terms
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NTELOS Holdings (NTELOS Holdings) Business Description
NTELOS Holdings Corp was incorporated on January 14, 2005. The Company is a provider of digital wireless communications services to consumers and businesses in Virginia and West Virginia, as well as parts of Maryland, North Carolina, Pennsylvania, Ohio and Kentucky. It offers wireless voice and CDMA digital data PCS products and services to retail and business customers under the NTELOS Wireless and FRAWG Wireless brand names. It conducts its businesses through NTELOS-branded retail operations, which sells its products and services via direct and indirect distribution channels, and provides network access to other telecommunications carriers through an arrangement with Sprint Spectrum L.P. The Company currently offers 20 devices across 13 brands, including Apple iPhone, Motorola, LG, Samsung and HTC products, and offers its customers smartphone operating systems such as Android and iOS. All devices are available for both postpay and prepay/no-contract services. Its customer service is supported by three regional call centers, 61 company-operated direct retail locations, 384 indirect retail distribution locations, and an additional 459 third-party payment centers. It also markets FRAWG Wireless, a no contract service intended to attract consumers who choose a prepay service option. In the postpay market, the Company competes with AT&T, Sprint, Verizon, T-Mobile and U.S. Cellular, as well as a number of reseller/affiliates of some or all of these companies. In the prepay wireless service, it competes with Boost, Straight Talk, Virgin Mobile, TracFone, Simple Mobile and Net10. The Company's communications and wireless operations are subject to various federal, state laws, and local regulation intended to protect the privacy of customers who subscribe to its services.
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