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.
Casa Systems's Sloan Ratio for the quarter that ended in Sep. 2023 was -24.86%.
As of Sep. 2023, Casa Systems has a Sloan Ratio of -24.86%, indicating there is a warning stage of accrual build up.
Casa Systems Sloan Ratio % Historical Data
The historical data trend for Casa Systems'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 Casa Systems's Sloan Ratio %
For the Communication Equipment subindustry, Casa Systems'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.
Casa Systems's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Casa Systems's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Casa Systems's Sloan Ratio % falls into.
Casa Systems 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.
Casa Systems's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Casa Systems's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 1.24 (Dec. 2022 ) + -31.658 (Mar. 2023 ) + -51.136 (Jun. 2023 ) + -25.618 (Sep. 2023 ) = $-107.2 Mil.
Casa Systems's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -20.297 (Dec. 2022 ) + -8.35 (Mar. 2023 ) + 4.358 (Jun. 2023 ) + -14.605 (Sep. 2023 ) = $-38.9 Mil.
Casa Systems's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -1.094 (Dec. 2022 ) + -0.679 (Mar. 2023 ) + -0.397 (Jun. 2023 ) + -0.843 (Sep. 2023 ) = $-3.0 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.
Casa Systems (OTCPK:CASSQ) 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, Casa Systems has a Sloan Ratio of -24.86%, indicating there is a warning stage of accrual build up.
Casa Systems Sloan Ratio % Related Terms
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Casa Systems Inc is engaged in providing a suite of software-centric infrastructure solutions that allow cable service providers to deliver voice, video and data services over a single platform at multi-gigabit speeds. In addition, the company offers solutions for next-generation distributed and virtualized architectures in cable operator, fixed telecom, and wireless networks. The company focuses on creating a software-centric, multi-service portfolio that enables a broad range of core and access network functions for fixed and wireless networks. The company's product line includes cable networks, IP networks, mobile networks, optical networks, professional and managed services and others. Substantial revenue is generated from North American operations.
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