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 Mar. 2024, Voltronic Power Technology has a Sloan Ratio of -4.34%, indicating the company is in the safe zone and there is no funny business with accruals.
Voltronic Power Technology 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.
Competitive Comparison of Voltronic Power Technology's Sloan Ratio %
For the Electrical Equipment & Parts subindustry, Voltronic Power 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.
Voltronic Power Technology's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Voltronic Power Technology's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Voltronic Power Technology's Sloan Ratio % falls into.
Voltronic Power 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.
Voltronic Power Technology's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1322.03 (Jun. 2023 ) + 629.643 (Sep. 2023 ) + 924.97 (Dec. 2023 ) + 713.868 (Mar. 2024 ) = NT$3,591 Mil.
Voltronic Power Technology's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1417.601 (Jun. 2023 ) + 666.705 (Sep. 2023 ) + 1095.804 (Dec. 2023 ) + 1288.173 (Mar. 2024 ) = NT$4,468 Mil.
Voltronic Power Technology's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -96.625 (Jun. 2023 ) + -37.606 (Sep. 2023 ) + -26.295 (Dec. 2023 ) + -10.626 (Mar. 2024 ) = NT$-171 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.
Voltronic Power Technology (TPE:6409) 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, Voltronic Power Technology has a Sloan Ratio of -4.34%, indicating the company is in the safe zone and there is no funny business with accruals.
Voltronic Power Technology Sloan Ratio % Related Terms
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Voltronic Power Technology (TPE:6409) Business Description
Voltronic Power Technology Corp is a Taiwan-based company that manufactures and distributes uninterruptible power supplies (UPSs), photovoltaic products, and electronic materials. Voltronic's product portfolio includes solar power pump inverters, off-grid inverters, standby UPSs, online and off-line UPSs, line interactive UPSs, automatic voltage regulators (AVRs), bypass switches, simple network management protocol cards, modbus cards, and rack towers. The firm has four manufacturing facilities in China and Taiwan.
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