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.
Comdisco Holding Co's Sloan Ratio for the quarter that ended in Sep. 2014 was 0.00%.
As of Sep. 2014, Comdisco Holding Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Comdisco Holding Co Sloan Ratio % Historical Data
The historical data trend for Comdisco Holding Co'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 Comdisco Holding Co's Sloan Ratio %
For the Conglomerates subindustry, Comdisco Holding Co'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.
Comdisco Holding Co's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Comdisco Holding Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Comdisco Holding Co's Sloan Ratio % falls into.
Comdisco Holding Co 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.
Comdisco Holding Co's Sloan Ratio for the fiscal year that ended in Sep. 2014 is calculated as
Comdisco Holding Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2014 was -1.219 (Dec. 2013 ) + 1.249 (Mar. 2014 ) + 0.633 (Jun. 2014 ) + 0.192 (Sep. 2014 ) = $0.86 Mil.
Comdisco Holding Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 0.174 (Dec. 2013 ) + 0.834 (Mar. 2014 ) + -0.121 (Jun. 2014 ) + -0.534 (Sep. 2014 ) = $0.35 Mil.
Comdisco Holding Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2014 was 0 (Dec. 2013 ) + 4.003 (Mar. 2014 ) + 0 (Jun. 2014 ) + 0 (Sep. 2014 ) = $4.00 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.
Comdisco Holding Co (OTCPK:CDCO) 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. 2014, Comdisco Holding Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Comdisco Holding Co Sloan Ratio % Related Terms
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Comdisco Holding Co (Comdisco Holding Co) Business Description
Comdisco Holding Company, Inc. was formed on August 8, 2002 for the purpose of selling, collecting or otherwise reducing to money in an orderly manner the remaining assets of the Company and all of its direct and indirect subsidiaries, including Comdisco, Inc. Comdisco emerged from chapter 11 bankruptcy proceedings on August 12, 2002. Prior to the bankruptcy, Comdisco, Inc. provided technology services worldwide to help its customers maximize technology functionality, predictability, and availability, while freeing them from the complexity of managing their technology. Comdisco, Inc. offered leasing to key vertical industries, including semiconductor manufacturing and electronic assembly, healthcare, telecommunications, pharmaceutical, biotechnology and manufacturing. Through its Comdisco Ventures group, Comdisco, Inc. provided equipment leasing and other financing and services to venture capital-backed companies. The Company is engaged in selling, collecting or reducing its remaining assets to money as per its reorganization plan.
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