Deer Consumer Products (Deer Consumer Products) Sloan Ratio % : 23.11% (As of Jun. 2012)

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What is Deer Consumer Products 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.

Deer Consumer Products's Sloan Ratio for the quarter that ended in Jun. 2012 was 23.11%.

As of Jun. 2012, Deer Consumer Products has a Sloan Ratio of 23.11%, indicating earnings are more likely to be made up of accruals.

Deer Consumer Products Sloan Ratio % Historical Data

The historical data trend for Deer Consumer Products'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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Deer Consumer Products Sloan Ratio % Chart

Deer Consumer Products Annual Data

Trend

Sep07

Dec08

Dec09

Dec10

Dec11

Sloan Ratio %

11.02

11.83

40.64

27.43

Deer Consumer Products Quarterly Data
	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12
Sloan Ratio %	Get a 7-Day Free Trial															44.63	30.98	27.43	23.77	23.11

Competitive Comparison of Deer Consumer Products's Sloan Ratio %

For the Furnishings, Fixtures & Appliances subindustry, Deer Consumer Products'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.

Deer Consumer Products's Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Deer Consumer Products's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Deer Consumer Products's Sloan Ratio % falls into.

Deer Consumer Products 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.

Deer Consumer Products's Sloan Ratio for the fiscal year that ended in Dec. 2011 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2011 )	-	Cash Flow from Operations (A: Dec. 2011 )
	-	Cash Flow from Investing (A: Dec. 2011 ))	/	Total Assets (A: Dec. 2011 )
	=	(39.806	-	5.969
	-	-22.238)	/	204.403
	=	27.43%

Deer Consumer Products's Sloan Ratio for the quarter that ended in Jun. 2012 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Jun. 2012 )
	=	(40.217	-	11.845
	-	-20.359)	/	210.848
	=	23.11%

Deer Consumer Products's Net Income for the trailing twelve months (TTM) ended in Jun. 2012 was 13.248 (Sep. 2011 ) + 13.417 (Dec. 2011 ) + 7.826 (Mar. 2012 ) + 5.726 (Jun. 2012 ) = $40.2 Mil.
Deer Consumer Products's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2012 was 1.154 (Sep. 2011 ) + 13.096 (Dec. 2011 ) + 3.48 (Mar. 2012 ) + -5.885 (Jun. 2012 ) = $11.8 Mil.
Deer Consumer Products's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2012 was 4.41 (Sep. 2011 ) + -24.331 (Dec. 2011 ) + -0.443 (Mar. 2012 ) + 0.005 (Jun. 2012 ) = $-20.4 Mil.

Deer Consumer Products (OTCPK:DEER) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Jun. 2012, Deer Consumer Products has a Sloan Ratio of 23.11%, indicating earnings are more likely to be made up of accruals.

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