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.
Cirrus Logic's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.41%.
As of Dec. 2023, Cirrus Logic has a Sloan Ratio of -2.41%, indicating the company is in the safe zone and there is no funny business with accruals.
Cirrus Logic Sloan Ratio % Historical Data
The historical data trend for Cirrus Logic'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 Cirrus Logic's Sloan Ratio %
For the Semiconductors subindustry, Cirrus Logic'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.
Cirrus Logic's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Cirrus Logic's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cirrus Logic's Sloan Ratio % falls into.
Cirrus Logic 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.
Cirrus Logic's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Cirrus Logic's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -53.669 (Mar. 2023 ) + 15.6 (Jun. 2023 ) + 75.407 (Sep. 2023 ) + 138.723 (Dec. 2023 ) = $176 Mil.
Cirrus Logic's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 48.266 (Mar. 2023 ) + -39.813 (Jun. 2023 ) + -22.731 (Sep. 2023 ) + 313.692 (Dec. 2023 ) = $299 Mil.
Cirrus Logic's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -9.128 (Mar. 2023 ) + -14.634 (Jun. 2023 ) + -9.152 (Sep. 2023 ) + -36.971 (Dec. 2023 ) = $-70 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.
Cirrus Logic (NAS:CRUS) 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, Cirrus Logic has a Sloan Ratio of -2.41%, indicating the company is in the safe zone and there is no funny business with accruals.
Cirrus Logic Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Cirrus Logic's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cirrus Logic Inc is a provider of integrated circuits for audio and voice signal processing applications. The firm's products are organized into two streams: portable audio products, and non-portable audio and other products. These products include analog and mixed-signal components targeting mobile devices, smart homes, and applications in the automotive, energy, and industrial markets. Roughly half of the firm's revenue is generated in China, with the rest coming from the United States, Europe, South Korea, and countries across the world.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CRUS has been successfully added to your 