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.
Phison Electronics's Sloan Ratio for the quarter that ended in Dec. 2024 was 2.82%.
As of Dec. 2024, Phison Electronics has a Sloan Ratio of 2.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Phison Electronics Sloan Ratio % Historical Data
The historical data trend for Phison Electronics'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 Phison Electronics's Sloan Ratio %
For the Semiconductors subindustry, Phison Electronics'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.
Phison Electronics's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Phison Electronics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Phison Electronics's Sloan Ratio % falls into.
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.
Phison Electronics's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Phison Electronics's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 2419.618 (Mar. 2024 ) + 2450.969 (Jun. 2024 ) + 691.424 (Sep. 2024 ) + 2391.195 (Dec. 2024 ) = NT$7,953 Mil.
Phison Electronics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -7897.526 (Mar. 2024 ) + 3235.182 (Jun. 2024 ) + 967.809 (Sep. 2024 ) + 5788.628 (Dec. 2024 ) = NT$2,094 Mil.
Phison Electronics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -251.011 (Mar. 2024 ) + -113.661 (Jun. 2024 ) + -233.534 (Sep. 2024 ) + 4501.346 (Dec. 2024 ) = NT$3,903 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.
Phison Electronics (ROCO:8299) 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. 2024, Phison Electronics has a Sloan Ratio of 2.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Phison Electronics Sloan Ratio % Related Terms
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Phison Electronics Corp is a Taiwan-based company engaged in designing and manufacturing flash memory controllers and peripheral system applications. Its product portfolio includes Flash memory module products, Controllers, Integrated circuits, and Others. Geographically company has a presence in Asia, America, Europe, Australia, and Others in which key revenue is derived from Asia.
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