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.
Atmel's Sloan Ratio for the quarter that ended in Dec. 2015 was -5.80%.
As of Dec. 2015, Atmel has a Sloan Ratio of -5.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Atmel Sloan Ratio % Historical Data
The historical data trend for Atmel'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.
For the Semiconductors subindustry, Atmel'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.
Atmel's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Atmel's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Atmel's Sloan Ratio % falls into.
Atmel 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.
Atmel's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Atmel's Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was 16.495 (Mar. 2015 ) + 6.312 (Jun. 2015 ) + -0.614 (Sep. 2015 ) + 4.698 (Dec. 2015 ) = $27 Mil.
Atmel's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 40.135 (Mar. 2015 ) + 25.931 (Jun. 2015 ) + 30.594 (Sep. 2015 ) + 9.116 (Dec. 2015 ) = $106 Mil.
Atmel's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was -10.908 (Mar. 2015 ) + 1.236 (Jun. 2015 ) + 7.162 (Sep. 2015 ) + -3.259 (Dec. 2015 ) = $-6 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.
Atmel (NAS:ATML) 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. 2015, Atmel has a Sloan Ratio of -5.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Atmel Sloan Ratio % Related Terms
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Atmel Corp was originally incorporated in California on December 5, 1984 and was reincorporated in Delaware in October 1999. The Company designs, develops and supplies microcontrollers, which are self-contained computers-on-a-chip. It organizes its business into four reportable operating segments; Microcontrollers, Nonvolatile Memories, Radio Frequency, and Application Specific Integrated Circuits. Its Microcontrollers segment includes Atmel's maXTouch capacitive touch product families and its general purpose microcontroller and microprocessor families, AVR 8-bit and 32-bit products, ARM based products, Atmel's 8051 8-bit products, designated commercial wireless products, including low power radio and SOC products that meet Zigbee and Wi-Fi specifications and optimized products for mobile sensor hub, smart energy, touch button and LED lighting applications. Its Nonvolatile Memories segment includes electrically erasable programmable read-only "EEPROM" and erasable programmable read-only memory "EPROM" devices. Its Radio Frequency and Automotive segment includes automotive electronics, wireless and wired devices for industrial, consumer and automotive applications and foundry services. Its Application Specific Integrated Circuits segment includes custom application specific integrated circuits designed to meet specialized single-customer requirements for its high performance devices, including products that provide hardware security for embedded digital systems, products with military and aerospace applications and application specific standard products for space applications, power management and secure cryptographic memory products. The Company markets its products in various countries to a diverse base of OEMs serving commercial markets. It also sells its products to OEM accounts through its direct sales force, using manufacturers' representatives or through national and regional distributors. It sells its products in United States, Asia and Europe. Throughout its product line, the Company competes with a number of semiconductor manufacturers, such as Cypress, Freescale, Infineon, Intel, Microchip, NXP Semiconductors, ON Semiconductor, Renesas, Samsung, Silicon Labs, Spansion, STMicroelectronics, Synaptics, and Texas Instruments. The Company relies on patents, copyrights, trademarks and trade secrets, as well as nondisclosure agreements and other methods to protect its proprietary technologies and processes.
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