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.
Apyx Medical's Sloan Ratio for the quarter that ended in Dec. 2023 was -25.49%.
Warning Sign:
When sloan ratio (-25.49)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Apyx Medical has a Sloan Ratio of -25.49%, indicating earnings are more likely to be made up of accruals.
Apyx Medical Sloan Ratio % Historical Data
The historical data trend for Apyx Medical'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 Apyx Medical's Sloan Ratio %
For the Medical Devices subindustry, Apyx Medical'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.
Apyx Medical's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Apyx Medical's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Apyx Medical's Sloan Ratio % falls into.
Apyx Medical 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.
Apyx Medical's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Apyx Medical's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -3.483 (Mar. 2023 ) + -0.994 (Jun. 2023 ) + -4.629 (Sep. 2023 ) + -9.607 (Dec. 2023 ) = $-18.71 Mil.
Apyx Medical's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -1.881 (Mar. 2023 ) + -4.852 (Jun. 2023 ) + 3.696 (Sep. 2023 ) + -2.212 (Dec. 2023 ) = $-5.25 Mil.
Apyx Medical's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.11 (Mar. 2023 ) + 7.111 (Jun. 2023 ) + -0.174 (Sep. 2023 ) + -0.093 (Dec. 2023 ) = $6.73 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.
Apyx Medical (NAS:APYX) 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. 2023, Apyx Medical has a Sloan Ratio of -25.49%, indicating earnings are more likely to be made up of accruals.
Apyx Medical Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Apyx Medical's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Apyx Medical Corp is an energy technology medical device company. It specializes in developing, manufacturing, and marketing a range of cosmetic and surgical products and technologies, as well as related medical products used in doctor's offices, surgery centers, and hospitals. Its product offerings comprise Renuvion cosmetic technology, which offers plastic surgeons, facial plastic surgeons, and cosmetic physicians the ability to provide controlled heat to the tissue to achieve desired results. The J-Plasma system allows surgeons to operate with a high level of precision and virtually eliminates unintended tissue trauma. It operates in two segments namely: Advanced Energy and Original Equipment Manufacturing (OEM). Its Advanced Energy segment derives the majority of its revenue.
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