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.
Digital Turbine's Sloan Ratio for the quarter that ended in Dec. 2023 was -19.63%.
As of Dec. 2023, Digital Turbine has a Sloan Ratio of -19.63%, indicating there is a warning stage of accrual build up.
Digital Turbine Sloan Ratio % Historical Data
The historical data trend for Digital Turbine'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 Digital Turbine's Sloan Ratio %
For the Software - Application subindustry, Digital Turbine'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.
Digital Turbine's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Digital Turbine's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Digital Turbine's Sloan Ratio % falls into.
Digital Turbine 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.
Digital Turbine's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Digital Turbine's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -13.932 (Mar. 2023 ) + -8.179 (Jun. 2023 ) + -161.482 (Sep. 2023 ) + -14.061 (Dec. 2023 ) = $-197.7 Mil.
Digital Turbine's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 15.862 (Mar. 2023 ) + 1.318 (Jun. 2023 ) + 27.454 (Sep. 2023 ) + 11.661 (Dec. 2023 ) = $56.3 Mil.
Digital Turbine's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -9.759 (Mar. 2023 ) + -7.276 (Jun. 2023 ) + -7.001 (Sep. 2023 ) + -12.72 (Dec. 2023 ) = $-36.8 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.
Digital Turbine (LTS:0A6A) 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, Digital Turbine has a Sloan Ratio of -19.63%, indicating there is a warning stage of accrual build up.
Digital Turbine Sloan Ratio % Related Terms
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Digital Turbine Inc is an independent mobile growth platform. It offers end-to-end products and solutions to all participants in the mobile application ecosystem, enabling brand discovery and advertising, user acquisition and engagement, and operational efficiency for advertisers. Its operating segments are On Device Media (ODM); In App Media-AdColony; and In App Media-Fyber. The company derives key revenue from the ODM segment by providing solutions to all participants in the mobile application ecosystem who want to connect with end users and consumers who hold the device, including mobile carriers and device original equipment manufacturers (OEMs) that participate in the app economy, app publishers and developers, and brands and advertising agencies. It has a global business presence.
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