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.
UFP Technologies's Sloan Ratio for the quarter that ended in Dec. 2024 was 32.20%.
Warning Sign:
When sloan ratio (32.2)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2024, UFP Technologies has a Sloan Ratio of 32.20%, indicating earnings are more likely to be made up of accruals.
UFP Technologies Sloan Ratio % Historical Data
The historical data trend for UFP Technologies'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 UFP Technologies's Sloan Ratio %
For the Medical Devices subindustry, UFP Technologies'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.
UFP Technologies's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, UFP Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where UFP Technologies'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.
UFP Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
UFP Technologies's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 12.693 (Mar. 2024 ) + 13.552 (Jun. 2024 ) + 16.361 (Sep. 2024 ) + 16.375 (Dec. 2024 ) = $59.0 Mil.
UFP Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 10.654 (Mar. 2024 ) + 11.714 (Jun. 2024 ) + 19.801 (Sep. 2024 ) + 24.424 (Dec. 2024 ) = $66.6 Mil.
UFP Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -1.732 (Mar. 2024 ) + -7.381 (Jun. 2024 ) + -197.167 (Sep. 2024 ) + -3.884 (Dec. 2024 ) = $-210.2 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.
UFP Technologies (NAS:UFPT) 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, UFP Technologies has a Sloan Ratio of 32.20%, indicating earnings are more likely to be made up of accruals.
UFP Technologies Sloan Ratio % Related Terms
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UFP Technologies Inc is a designer and custom manufacturer of components, subassemblies, products, and packaging utilizing specialized foams, films, and plastics for the medical market. The company manufactures its products by converting raw materials using laminating, molding, radio frequency and impulse welding, and fabricating manufacturing techniques. It is an important link in the medical device supply chain and a valued outsource partner to many of the top medical device manufacturers in the world. The company's single-use and single-patient devices and components are used in a wide range of medical devices, disposable wound care products, infection prevention, minimally invasive surgery, wearables, orthopedic soft goods, and orthopedic implant packaging.
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