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.
FleetMatics Group's Sloan Ratio for the quarter that ended in Jun. 2016 was 0.14%.
As of Jun. 2016, FleetMatics Group has a Sloan Ratio of 0.14%, indicating the company is in the safe zone and there is no funny business with accruals.
FleetMatics Group Sloan Ratio % Historical Data
The historical data trend for FleetMatics Group'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 FleetMatics Group's Sloan Ratio %
For the Software - Application subindustry, FleetMatics Group'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.
FleetMatics Group's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, FleetMatics Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where FleetMatics Group's Sloan Ratio % falls into.
FleetMatics Group 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.
FleetMatics Group's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
FleetMatics Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2016 was 8.816 (Sep. 2015 ) + 12.83 (Dec. 2015 ) + 5.561 (Mar. 2016 ) + 3.349 (Jun. 2016 ) = $30.6 Mil.
FleetMatics Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 30.082 (Sep. 2015 ) + 22.465 (Dec. 2015 ) + 23.471 (Mar. 2016 ) + 23.255 (Jun. 2016 ) = $99.3 Mil.
FleetMatics Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2016 was -13.798 (Sep. 2015 ) + -34.647 (Dec. 2015 ) + -9.822 (Mar. 2016 ) + -11.024 (Jun. 2016 ) = $-69.3 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.
FleetMatics Group (NYSE:FLTX) 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 Jun. 2016, FleetMatics Group has a Sloan Ratio of 0.14%, indicating the company is in the safe zone and there is no funny business with accruals.
FleetMatics Group Sloan Ratio % Related Terms
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FleetMatics Group (FleetMatics Group) Business Description
FleetMatics Group PLC was incorporated in Ireland on October 28, 2004 as a private limited company. The Company is a holding company and conduct substantially all of its business through its wholly-owned operating subsidiaries, FleetMatics IRL Limited, FleetMatics UK Limited, FleetMatics USA, LLC, SageQuest LLC, and Connect2Field Pty Ltd. It is a provider of fleet management solutions delivered as software-as-a-service, or SaaS. Its mobile software platform enables businesses to meet the challenges associated with managing their local fleets of commercial vehicles and improve productivity by extracting actionable business intelligence from vehicle and driver behavioral data. The Company offers intuitive, cost-effective Web-based and mobile application solutions that provide fleet operators with visibility into vehicle location, fuel usage, speed and mileage and other insights into their mobile workforce, enabling them to reduce operating and capital costs, as well as increase revenue. As of December 31, 2013, the Company had approximately 22,000 customers who collectively deployed its solutions in over 445,000 vehicles worldwide. The substantial majority of its customers are small and medium-sized businesses, or SMBs, each of which deploys its solutions in 1,000 or fewer vehicles. Many SMBs manage their local fleets by using manual processes, such as entering data on time sheets and communicating with mobile employees using cellular phones, which generate minimal actionable business intelligence. Its multi-tenant SaaS solutions are designed to meet the needs of SMBs, overcome existing barriers to adoption, and leverage the volumes of data transmitted to them from in-vehicle devices over cellular networks that they aggregate and analyze from its large and growing subscriber base. By using its solutions to extract actionable business intelligence from the data on their fleet and mobile workforce, fleet operators gain greater control over fuel, maintenance, labor and other costs while improving the return on capital invested in their fleet. The Company's SaaS solutions enable businesses to meet the challenges associated with managing their local fleets by extracting actionable business intelligence from vehicle and driver behavioral data. Its fleet management solutions can be accessed over personal computers, tablets or smart phones. The Company's Fleet Tracking Alerts allow fleet operators to set driver performance thresholds and receive email notifications when unwanted driving behavior occurs. Notifications are sent when a vehicle enters or exits specified areas, moves during specified times, or when a vehicle's speed or idle time exceeds specified thresholds. Its Route Replay feature allows customers to play back each journey taken by their vehicles, from start up to shut down and provides customers with minute-by-minute location and speed details. Its marketing programs target owners and managers in the service and distribution
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