What is Alliance Fiber Optic Products Sloan Ratio %?
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.
* 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 Alliance Fiber Optic Products's Sloan Ratio %
For the Electronic Components subindustry, Alliance Fiber Optic Products'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.
Alliance Fiber Optic Products's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Alliance Fiber Optic Products's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Alliance Fiber Optic Products's Sloan Ratio % falls into.
Alliance Fiber Optic Products 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.
Alliance Fiber Optic Products's Net Income for the trailing twelve months (TTM) ended in Mar. 2016 was 5.04 (Jun. 2015 ) + 3.653 (Sep. 2015 ) + 0.787 (Dec. 2015 ) + -0.536 (Mar. 2016 ) = $8.94 Mil.
Alliance Fiber Optic Products's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 8.443 (Jun. 2015 ) + 2.641 (Sep. 2015 ) + 0.401 (Dec. 2015 ) + 2.811 (Mar. 2016 ) = $14.30 Mil.
Alliance Fiber Optic Products's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 was -7.324 (Jun. 2015 ) + 0.645 (Sep. 2015 ) + 15.58 (Dec. 2015 ) + 4.235 (Mar. 2016 ) = $13.14 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.
Alliance Fiber Optic Products (NAS:AFOP) 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. 2016, Alliance Fiber Optic Products has a Sloan Ratio of -23.18%, indicating there is a warning stage of accrual build up.
Alliance Fiber Optic Products Sloan Ratio % Related Terms
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Alliance Fiber Optic Products (Alliance Fiber Optic Products) Business Description
Alliance Fiber Optic Products Inc was incorporated in California on December 12, 1995. The Company designs, manufactures and markets fiber optic components and integrated modules incorporating these components, for communications equipment manufacturers and service providers. The Company products including interconnect devices that are used to connect optical fibers and components, couplers and splitters that are used to divide and combine optical power, and dense wavelength division multiplexing, or DWDM, devices that separate and combine multiple specific wavelengths. Its lines of optical products support the needs of current and next generation optical network systems applications. Its connectivity product family provides a comprehensive line of optical interconnect devices, couplers and splitters, PLC (planar lightwave circuits) and related optical products, as well as customized integrated modules incorporating these devices. Its optical passive products include WDM, CWDM and DWDM components and modules that utilize thin film filter technologies to separate optical signals, variable attenuators, optical switches and other optical devices utilizing micro optic lensing technology including integrated electro-optical modules incorporating these products. It sells its products to communications equipment manufacturers in the United States and also maintain a sales support staff in Taiwan to service customers based in the Asia Pacific region. The Companys main competitors in the components market include JDS Uniphase Corp., Oclaro Inc., Oplink Communications, Inc., Senko Advanced Components and TE Connectivity.
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