Emtec (ETEC) Sloan Ratio % : -20.37% (As of Feb. 2013)

Emtec Sloan Ratio % Chart

Emtec Annual Data
	Trend	Mar03	Mar04	Mar05	Aug06	Aug07	Aug08	Aug09	Aug10	Aug11	Aug12
Sloan Ratio %		Get a 7-Day Free Trial					5.05	-0.18	6.22	6.21	-20.23

Emtec Quarterly Data
	May08	Aug08	Nov08	Feb09	May09	Aug09	Nov09	Feb10	May10	Aug10	Nov10	Feb11	May11	Aug11	Nov11	Feb12	May12	Aug12	Nov12	Feb13
Sloan Ratio %	Get a 7-Day Free Trial															5.05	7.47	-20.22	-23.68	-20.37

Competitive Comparison of Emtec's Sloan Ratio %

For the Information Technology Services subindustry, Emtec'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.

Emtec's Sloan Ratio % Distribution in the Software Industry

For the Software industry and Technology sector, Emtec's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Emtec's Sloan Ratio % falls into.

Emtec 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.

Emtec's Sloan Ratio for the fiscal year that ended in Aug. 2012 is calculated as

Emtec's Sloan Ratio for the quarter that ended in Feb. 2013 is calculated as

Emtec's Net Income for the trailing twelve months (TTM) ended in Feb. 2013 was -0.926 (May. 2012 ) + -9.213 (Aug. 2012 ) + -0.746 (Nov. 2012 ) + -1.053 (Feb. 2013 ) = $-11.9 Mil.
Emtec's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2013 was 1.103 (May. 2012 ) + 1.664 (Aug. 2012 ) + -2.49 (Nov. 2012 ) + 1.302 (Feb. 2013 ) = $1.6 Mil.
Emtec's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2013 was -0.665 (May. 2012 ) + -0.094 (Aug. 2012 ) + -0.203 (Nov. 2012 ) + -0.206 (Feb. 2013 ) = $-1.2 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.

Emtec  (OTCPK:ETEC) 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 Feb. 2013, Emtec has a Sloan Ratio of -20.37%, indicating there is a warning stage of accrual build up.

Emtec Sloan Ratio % Related Terms

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Emtec (ETEC) Business Description