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.
Cynosure's Sloan Ratio for the quarter that ended in Dec. 2016 was -0.79%.
As of Dec. 2016, Cynosure has a Sloan Ratio of -0.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Cynosure Sloan Ratio % Historical Data
The historical data trend for Cynosure'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 Cynosure's Sloan Ratio %
For the Medical Devices subindustry, Cynosure'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.
Cynosure's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Cynosure's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cynosure's Sloan Ratio % falls into.
Cynosure 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.
Cynosure's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Cynosure's Net Income for the trailing twelve months (TTM) ended in Dec. 2016 was 2.847 (Mar. 2016 ) + 6.34 (Jun. 2016 ) + 4.163 (Sep. 2016 ) + 0.851 (Dec. 2016 ) = $14.2 Mil.
Cynosure's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was -0.346 (Mar. 2016 ) + 16.303 (Jun. 2016 ) + 3.92 (Sep. 2016 ) + 25.157 (Dec. 2016 ) = $45.0 Mil.
Cynosure's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2016 was -15.48 (Mar. 2016 ) + -3.271 (Jun. 2016 ) + -2.834 (Sep. 2016 ) + -4.592 (Dec. 2016 ) = $-26.2 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.
Cynosure (NAS:CYNO) 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. 2016, Cynosure has a Sloan Ratio of -0.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Cynosure Sloan Ratio % Related Terms
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Cynosure Inc was incorporated in July 1991. The Company develops and markets aesthetic treatment systems that enable plastic surgeons, dermatologists and other medical practitioners to perform non-invasive and minimally invasive procedures to remove hair, treat vascular and benign pigmented lesions, remove multi-colored tattoos, revitalize the skin, liquefy and remove unwanted fat through laser lipolysis, reduce cellulite, clear nails infected by toe fungus and ablate sweat glands. It has also developed an aesthetic treatment product for the home use market. The Company sells its products through a direct sales force in North America, France, Spain, the United Kingdom, Germany, Australia, Korea, China, Japan and Mexico and through international distributors in approximately 120 other countries. Its product portfolio is composed of various energy sources including Alexandrite, diode, Nd:YAG, picosecond, pulse dye, and Q-switched lasers and intense pulsed light. It offers single energy source systems as well as workstations that incorporate two or more different types of lasers or pulsed light technologies. It offers multiple technologies and system alternatives at various price points depending mainly on the number and type of energy sources included in the system. Its products are designed to be easily upgradeable to add additional energy sources and handpieces, which provide its customers with technological flexibility as it expand their practices. The Company's latest innovations are SmartLipo system and PicoSure system. The Company's flagship products include Elite, Affirm/SmartSkin, Cynergy, Accolade. The Company sells its aesthetic treatment systems to the traditional physician customer base of dermatologists and plastic surgeons as well as to non-traditional physician customers who are providing aesthetic services using laser and light-based technology. Non-traditional physician customers can include primary care physicians, obstetricians and gynecologists. As of December 31, 2013, the Company owns over 60 United States patents, as well as many United States pending applications and foreign patents and pending applications. It is also joint owners with El.En. of certain patents and pending applications. The Company competes with Cutera, Solta Medical, Syneron Medical, ZELTIQ Aesthetics, Alma Lasers among others. Its products are medical devices subject to extensive and rigorous regulation by the U.S. Food and Drug Administration, or FDA, as well as other regulatory bodies.
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