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.
Apple's Sloan Ratio for the quarter that ended in Sep. 2023 was -4.89%.
As of Sep. 2023, Apple has a Sloan Ratio of -4.89%, indicating the company is in the safe zone and there is no funny business with accruals.
Apple Sloan Ratio % Historical Data
The historical data trend for Apple'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.
* Premium members only.
Apple Annual Data
Trend
Sep14
Sep15
Sep16
Sep17
Sep18
Sep19
Sep20
Sep21
Sep22
Sep23
Sloan Ratio %
-17.73
-5.86
1.48
-
-4.89
Apple Quarterly Data
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Sloan Ratio %
-
-1.82
-5.77
-5.49
-4.89
Competitive Comparison
For the Consumer Electronics subindustry, Apple'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.
Apple Sloan Ratio % Distribution
For the Hardware industry and Technology sector, Apple's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Apple's Sloan Ratio % falls into.
Apple 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.
Apple's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Apple's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 29998 (Dec. 2022 ) + 24160 (Mar. 2023 ) + 19881 (Jun. 2023 ) + 22956 (Sep. 2023 ) = $96,995 Mil.
Apple's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 34005 (Dec. 2022 ) + 28560 (Mar. 2023 ) + 26380 (Jun. 2023 ) + 21598 (Sep. 2023 ) = $110,543 Mil.
Apple's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -1445 (Dec. 2022 ) + 2319 (Mar. 2023 ) + 437 (Jun. 2023 ) + 2394 (Sep. 2023 ) = $3,705 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.
Apple (NAS:AAPL) 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, Apple has a Sloan Ratio of -4.89%, indicating the company is in the safe zone and there is no funny business with accruals.
Apple Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Apple's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), and AirPods, among others. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Fitness, Apple Card, and Apple Pay, among others. Apple's products include internally developed software and semiconductors, and the firm is well known for its integration of hardware, software, semiconductors, and services. Apple's products are distributed online as well as through company-owned stores and third-party retailers.
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