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.
GSI Technology's Sloan Ratio for the quarter that ended in Dec. 2023 was -15.57%.
As of Dec. 2023, GSI Technology has a Sloan Ratio of -15.57%, indicating there is a warning stage of accrual build up.
GSI Technology Sloan Ratio % Historical Data
The historical data trend for GSI Technology'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 GSI Technology's Sloan Ratio %
For the Semiconductors subindustry, GSI Technology'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.
GSI Technology's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, GSI Technology's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where GSI Technology's Sloan Ratio % falls into.
GSI Technology 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.
GSI Technology's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
GSI Technology's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -3.961 (Mar. 2023 ) + -5.11 (Jun. 2023 ) + -4.055 (Sep. 2023 ) + -6.601 (Dec. 2023 ) = $-19.73 Mil.
GSI Technology's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -4.6 (Mar. 2023 ) + -3.731 (Jun. 2023 ) + -2.564 (Sep. 2023 ) + -3.906 (Dec. 2023 ) = $-14.80 Mil.
GSI Technology's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.058 (Mar. 2023 ) + 1.893 (Jun. 2023 ) + 0.233 (Sep. 2023 ) + 0.645 (Dec. 2023 ) = $2.71 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.
GSI Technology (NAS:GSIT) 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, GSI Technology has a Sloan Ratio of -15.57%, indicating there is a warning stage of accrual build up.
GSI Technology Sloan Ratio % Related Terms
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GSI Technology (GSI Technology) Business Description
GSI Technology Inc is a provider of semiconductor memory solutions. The company develops and markets high-performance memory products, including Very Fast static random access memory, or SRAM, that are incorporated in high-performance networking and telecommunications equipment, such as routers, switches, wide area network infrastructure equipment, wireless base stations, and network access equipment. It sells these products to original equipment manufacturers, and customers including Nokia. In addition, it serves the ongoing needs of the military, aerospace, industrial, test and measurement equipment, and automotive and medical markets for high-performance SRAMs. It operates geographically in China, Singapore, the Netherlands, Germany, Rest of the world, and the United States.
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