What is Cogent Communications Holdings 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.
Cogent Communications Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was 36.72%.
Warning Sign:
When sloan ratio (36.72)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Cogent Communications Holdings has a Sloan Ratio of 36.72%, indicating earnings are more likely to be made up of accruals.
Cogent Communications Holdings Sloan Ratio % Historical Data
The historical data trend for Cogent Communications Holdings'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.
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Cogent Communications Holdings Sloan Ratio % Chart
Competitive Comparison of Cogent Communications Holdings's Sloan Ratio %
For the Telecom Services subindustry, Cogent Communications Holdings'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.
Cogent Communications Holdings's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Cogent Communications Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cogent Communications Holdings's Sloan Ratio % falls into.
Cogent Communications Holdings 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.
Cogent Communications Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Cogent Communications Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 6.148 (Mar. 2023 ) + 1123.863 (Jun. 2023 ) + -56.723 (Sep. 2023 ) + 200.153 (Dec. 2023 ) = $1,273.4 Mil.
Cogent Communications Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 35.821 (Mar. 2023 ) + 82.654 (Jun. 2023 ) + -52.432 (Sep. 2023 ) + -48.698 (Dec. 2023 ) = $17.3 Mil.
Cogent Communications Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -23.204 (Mar. 2023 ) + -22.316 (Jun. 2023 ) + 62.127 (Sep. 2023 ) + 60.119 (Dec. 2023 ) = $76.7 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.
Cogent Communications Holdings (NAS:CCOI) 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, Cogent Communications Holdings has a Sloan Ratio of 36.72%, indicating earnings are more likely to be made up of accruals.
Cogent Communications Holdings Sloan Ratio % Related Terms
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Cogent Communications Holdings (Cogent Communications Holdings) Business Description
Cogent carries over one fifth of the world's internet traffic over its network and is a broadband provider for businesses. Cogent's corporate customers are in high-rise office buildings; the firm provides them with two types of connections: dedicated internet access, which connects them to the internet, and virtual private networking, which offers an internal network for employees in different locations. Cogent's corporate customers are exclusively in North America and account for over half of the firm's revenue. Cogent's netcentric customers include internet service providers and content providers, to which Cogent provides internet transit. They hand traffic to Cogent in data centers and rely on Cogent to deliver it. About half of netcentric revenue is from outside the U.S.
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