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.
Princeton Technology's Sloan Ratio for the quarter that ended in Mar. 2024 was -9.21%.
As of Mar. 2024, Princeton Technology has a Sloan Ratio of -9.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Princeton Technology Sloan Ratio % Historical Data
The historical data trend for Princeton Technology'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 Princeton Technology's Sloan Ratio %
For the Semiconductors subindustry, Princeton Technology'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.
Princeton Technology's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Princeton Technology's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Princeton Technology's Sloan Ratio % falls into.
Princeton Technology 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.
Princeton Technology's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Princeton Technology's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 47.703 (Mar. 2023 ) + 5.111 (Jun. 2023 ) + 0.564 (Sep. 2023 ) + -27.181 (Mar. 2024 ) = NT$26 Mil.
Princeton Technology's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 118.041 (Mar. 2023 ) + -37.801 (Jun. 2023 ) + -50.557 (Sep. 2023 ) + 80.395 (Mar. 2024 ) = NT$110 Mil.
Princeton Technology's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 120.981 (Mar. 2023 ) + -25.203 (Jun. 2023 ) + -64.187 (Sep. 2023 ) + 113.405 (Mar. 2024 ) = NT$145 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.
Princeton Technology (ROCO:6129) 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, Princeton Technology has a Sloan Ratio of -9.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Princeton Technology Sloan Ratio % Related Terms
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Princeton Technology (ROCO:6129) Business Description
Princeton Technology Corp is engaged in the development, design, testing and sales of consumer integrated circuits (ICs). Its products include Display Driver ICs, Multimedia Audio Controller ICs, Motor Driver ICs, RF ICs, Encoder/Decoder ICs, Remote Control ICs, and ASICs and are suitable for a wide range of applications, including automotive dashboard and multimedia devices, portable audio players, digital TVs, home audio/video appliances, DSCs, DSLRs, monitoring cameras, and car security systems. Geographically, the activities are carried out in Taiwan, Japan, Korea, Mainland China(including HK) and others.
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