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.
Valuetronics Holdings's Sloan Ratio for the quarter that ended in Sep. 2023 was -6.00%.
As of Sep. 2023, Valuetronics Holdings has a Sloan Ratio of -6.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Valuetronics Holdings Sloan Ratio % Historical Data
The historical data trend for Valuetronics 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 Valuetronics Holdings's Sloan Ratio %
For the Electronic Components subindustry, Valuetronics 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.
Valuetronics Holdings's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Valuetronics Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Valuetronics Holdings's Sloan Ratio % falls into.
Valuetronics 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.
Valuetronics Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Valuetronics Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 11.124 (Mar. 2023 ) + 14.308 (Sep. 2023 ) = S$25.4 Mil.
Valuetronics Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 10.329 (Mar. 2023 ) + 33.644 (Sep. 2023 ) = S$44.0 Mil.
Valuetronics Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 1.422 (Mar. 2023 ) + 2.088 (Sep. 2023 ) = S$3.5 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.
Valuetronics Holdings (SGX:BN2) 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. 2023, Valuetronics Holdings has a Sloan Ratio of -6.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Valuetronics Holdings Sloan Ratio % Related Terms
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Valuetronics Holdings (SGX:BN2) Business Description
Valuetronics Holdings Ltd is an integrated electronics manufacturing services provider. The company specializes in original equipment manufacturing services as well as original design manufacturing services. It offers a broad combination of design, engineering, manufacturing, and supply chain support services for electronic and electro-mechanical products. It has two reportable segments - Consumer Electronics, and Industrial and Commercial Electronics covering smart lighting products, temperature sensing devices, communication products, automotive products and medical equipments. The majority of its revenue is derived from Industrial and Commercial Electronics segment. It has operational footprints across the United States of America, Hong Kong, Poland, Canada and other countries.
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