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.
Dentsply Sirona's Sloan Ratio for the quarter that ended in Sep. 2024 was -11.96%.
As of Sep. 2024, Dentsply Sirona has a Sloan Ratio of -11.96%, indicating there is a warning stage of accrual build up.
Dentsply Sirona Sloan Ratio % Historical Data
The historical data trend for Dentsply Sirona'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 Dentsply Sirona's Sloan Ratio %
For the Medical Instruments & Supplies subindustry, Dentsply Sirona'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.
Dentsply Sirona's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Dentsply Sirona's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dentsply Sirona's Sloan Ratio % falls into.
Dentsply Sirona 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.
Dentsply Sirona's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Dentsply Sirona's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 61.439 (Dec. 2023 ) + 16.56 (Mar. 2024 ) + -3.716 (Jun. 2024 ) + -445.094 (Sep. 2024 ) = €-371 Mil.
Dentsply Sirona's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 146.72 (Dec. 2023 ) + 23 (Mar. 2024 ) + 193.232 (Jun. 2024 ) + 127.041 (Sep. 2024 ) = €490 Mil.
Dentsply Sirona's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -18.34 (Dec. 2023 ) + -39.56 (Mar. 2024 ) + -46.45 (Jun. 2024 ) + -42.347 (Sep. 2024 ) = €-147 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.
Dentsply Sirona (WBO:XRAY) 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. 2024, Dentsply Sirona has a Sloan Ratio of -11.96%, indicating there is a warning stage of accrual build up.
Dentsply Sirona Sloan Ratio % Related Terms
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Dentsply Sirona is one of the world's largest manufacturers of dental equipment and supplies. It is a result of a merger of equals in 2016 between Dentsply International (manufactured dental consumables and lab products) and Sirona Dental Systems (manufactured technologically-advanced dental equipment). The firm's wide portfolio consists of dental consumables, lab products, CAD/CAM and imaging technology, medical devices, and specialty products in orthodontics, endodontics, and implantation. It distributes two-thirds of its dental consumables, technology and equipment through third-party distributors and the remaining portfolio is either sold to labs and offices through the firm's salesforce or directly to consumers (such as Byte clear aligner).
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