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.
Leapfrog Enterprises's Sloan Ratio for the quarter that ended in Dec. 2015 was -66.54%.
As of Dec. 2015, Leapfrog Enterprises has a Sloan Ratio of -66.54%, indicating earnings are more likely to be made up of accruals.
Leapfrog Enterprises Sloan Ratio % Historical Data
The historical data trend for Leapfrog Enterprises'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 Leapfrog Enterprises's Sloan Ratio %
For the Electronic Gaming & Multimedia subindustry, Leapfrog Enterprises'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.
Leapfrog Enterprises's Sloan Ratio % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Leapfrog Enterprises's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Leapfrog Enterprises's Sloan Ratio % falls into.
Leapfrog Enterprises 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.
Leapfrog Enterprises's Sloan Ratio for the fiscal year that ended in Mar. 2015 is calculated as
Leapfrog Enterprises's Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was -76.166 (Mar. 2015 ) + -27.325 (Jun. 2015 ) + -34.066 (Sep. 2015 ) + -44.225 (Dec. 2015 ) = $-181.8 Mil.
Leapfrog Enterprises's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 40.355 (Mar. 2015 ) + -31.107 (Jun. 2015 ) + -31.225 (Sep. 2015 ) + -17.068 (Dec. 2015 ) = $-39.0 Mil.
Leapfrog Enterprises's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was -5.771 (Mar. 2015 ) + -7.831 (Jun. 2015 ) + -3.908 (Sep. 2015 ) + -1.817 (Dec. 2015 ) = $-19.3 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.
Leapfrog Enterprises (NYSE:LF) 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. 2015, Leapfrog Enterprises has a Sloan Ratio of -66.54%, indicating earnings are more likely to be made up of accruals.
Leapfrog Enterprises Sloan Ratio % Related Terms
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Leapfrog Enterprises (Leapfrog Enterprises) Business Description
Leapfrog Enterprises Inc was incorporated in 1997 in the State of Delaware. The Company is a developer of educational entertainment for children. It designs, develops, and markets technology-based learning products and related proprietary content for children around the world. It organizes, operates and assesses its business in two segments namely United States and International. The U.S. segment is responsible for the development, design, sales and marketing of multimedia learning platforms and related content, as well as learning toys, sold in the U.S. This segment markets and sells products directly to national and regional mass-market and specialty retailers and other retail stores and distributors. This segment also sells products through online store, App Center, and other Internet-based channels. The International segment is responsible for the localization, sales and marketing of multimedia learning platforms and related content, as well as learning toys, originally developed for the U.S. This segment markets and sells products to national and regional mass-market and specialty retailers and other outlets through the Company's offices in the United Kingdom, France, Canada and Mexico, as well as through distributors in various markets such as Australia, South Africa and Spain. The Company's multimedia learning platform products include features that facilitate learning experiences provided by libraries available in cartridge, print and digitally-downloadable forms. The LeapPad learning tablet line is children's learning tablets for children's aging three to nine, with built-in cameras for taking photographs and videos, and age-appropriate on-board content and utilities. LeapPad tablets are compatible with cartridge and digital content designed for LeapPads from LeapFrog Learning Library. The Company launched LeapPad3, a new version of 5 screen tablet line featuring a capacitive screen and faster processor, and LeapPad Ultra XDi, a revised version of LeapPad Ultra. The learning toys are generally designed for children from birth to age four and combine education, innovation and the joy of play. While the Company's products compete in the learning toy and electronic learning-aids markets, the multimedia learning platforms increasingly compete in a broader arena with a variety of consumer electronics products including tablet computers, eBook readers, mobile devices and gaming platforms. It also faces increased competition from creators of digital applications, software and content for children.
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