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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.
As of Sep. 2017, Prism Technologies Group has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Prism Technologies Group (OTCPK:PRZM) 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. 2017, Prism Technologies Group has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Prism Technologies Group Sloan Ratio % Related Terms
Prism Technologies Group 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.
For the Information Technology Services subindustry, Prism Technologies Group'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.
Prism Technologies Group Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, Prism Technologies Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Prism Technologies Group's Sloan Ratio % falls into.
Prism Technologies Group 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.
Prism Technologies Group's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Prism Technologies Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2017 was -2.921 (Dec. 2016 ) + -1.068 (Mar. 2017 ) + -1.727 (Jun. 2017 ) + -0.38 (Sep. 2017 ) = $-6.10 Mil.
Prism Technologies Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2017 was -0.635 (Dec. 2016 ) + -0.334 (Mar. 2017 ) + -0.315 (Jun. 2017 ) + -0.12 (Sep. 2017 ) = $-1.40 Mil.
Prism Technologies Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2017 was 0 (Dec. 2016 ) + 0.4 (Mar. 2017 ) + 0 (Jun. 2017 ) + 0 (Sep. 2017 ) = $0.40 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.
Prism Technologies Group (PRZM) has a Sloan Ratio % of 0.00% as of Sep. 2017. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Prism Technologies Group and its competitors.
Is Prism Technologies Group's Sloan Ratio % too high?
Prism Technologies Group's current Sloan Ratio % is 0.00%.
How does Prism Technologies Group's Sloan Ratio % compare to SYSX?
Prism Technologies Group's Sloan Ratio % of 0.00% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Software company?
A good Sloan Ratio % depends on the Software industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Prism Technologies Group and its competitors. Prism Technologies Group's current Sloan Ratio % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prism Technologies Group stock overvalued right now?
Prism Technologies Group (PRZM) has a current Sloan Ratio % of 0.00%. The current Sloan Ratio % is 0.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Prism Technologies Group (PRZM), the current Sloan Ratio % is 0.00% as of Sep. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Prism Technologies Group Inc together with its subsidiaries operates as an intellectual property licensing and technology research and development company. It owns a patent portfolio consisting of nine patent families in the computer and network security, semiconductors and medical technology space. Prism continues to develop and patent new technologies and is committed to ongoing research and development efforts in several fields. Its objective is to develop and invent new technologies in the computer and network security, wearable computing, transaction processing and healthcare to speed time to market opportunities for the customers. Geographically all the operation of the firm is functioned through the region of US.
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