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.
Zenitel NV's Sloan Ratio for the quarter that ended in Dec. 2020 was 0.84%.
As of Dec. 2020, Zenitel NV has a Sloan Ratio of 0.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Zenitel NV Sloan Ratio % Historical Data
The historical data trend for Zenitel NV'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 Zenitel NV's Sloan Ratio %
For the Communication Equipment subindustry, Zenitel NV'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.
Zenitel NV's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Zenitel NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Zenitel NV's Sloan Ratio % falls into.
Zenitel NV 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.
Zenitel NV's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Zenitel NV's Net Income for the trailing twelve months (TTM) ended in Dec. 2020 was 3.648 (Jun. 2020 ) + 3.46 (Dec. 2020 ) = €7.11 Mil.
Zenitel NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2020 was 0.805 (Jun. 2020 ) + 6.595 (Dec. 2020 ) = €7.40 Mil.
Zenitel NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2020 was -0.55 (Jun. 2020 ) + -0.259 (Dec. 2020 ) = €-0.81 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.
Zenitel NV (XBRU:ZENT) 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. 2020, Zenitel NV has a Sloan Ratio of 0.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Zenitel NV Sloan Ratio % Related Terms
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Zenitel NV operates in the onshore and offshore secure communications market. It offers integrated security communications solutions under its VingtorStentofon brand. Zenitel products include intercom, public address, 2-way radio systems, sound reception system, and IT/IP solutions. The company serves a diverse range of markets, including building security and public safety, transportation, industrial, oil and gas, and maritime. Its geographical segments are Belgium, Norway, Singapore, Finland, France, the United States, and other foreign countries. The majority of its revenue is derived from Norway.
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