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.
Callidus Software's Sloan Ratio for the quarter that ended in Dec. 2017 was 9.16%.
As of Dec. 2017, Callidus Software has a Sloan Ratio of 9.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Callidus Software Sloan Ratio % Historical Data
The historical data trend for Callidus Software'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 Callidus Software's Sloan Ratio %
For the Software - Application subindustry, Callidus Software'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.
Callidus Software's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Callidus Software's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Callidus Software's Sloan Ratio % falls into.
Callidus Software 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.
Callidus Software's Sloan Ratio for the fiscal year that ended in Dec. 2017 is calculated as
Callidus Software's Net Income for the trailing twelve months (TTM) ended in Dec. 2017 was -6.898 (Mar. 2017 ) + -7.347 (Jun. 2017 ) + -3.827 (Sep. 2017 ) + -2.201 (Dec. 2017 ) = $-20.3 Mil.
Callidus Software's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2017 was 5.707 (Mar. 2017 ) + 7.987 (Jun. 2017 ) + 16.227 (Sep. 2017 ) + 13.039 (Dec. 2017 ) = $43.0 Mil.
Callidus Software's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2017 was -2.778 (Mar. 2017 ) + -17.914 (Jun. 2017 ) + -49.522 (Sep. 2017 ) + -33.993 (Dec. 2017 ) = $-104.2 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.
Callidus Software (NAS:CALD) 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. 2017, Callidus Software has a Sloan Ratio of 9.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Callidus Software Sloan Ratio % Related Terms
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Callidus Software (Callidus Software) Business Description
Callidus Software Inc provides cloud-based sales, marketing, learning, and customer-experience products. The firm's services enable its customers to identify leads, train personnel, automate pricing, and streamline sales compensation. The company has clients in a variety of industries, but focuses on telecommunications, insurance, banking, and technology. CallidusCloud products are sold on a subscription basis, typically through annual and multiyear contracts. A large majority of the firm's revenue is generated in the United States and Canada, but Callidus has a sizable presence in Asia-Pacific and Europe.
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