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.
Photronics's Sloan Ratio for the quarter that ended in Apr. 2022 was -2.95%.
As of Apr. 2022, Photronics has a Sloan Ratio of -2.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Photronics Sloan Ratio % Historical Data
The historical data trend for Photronics'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.
* Premium members only.
Photronics Annual Data
Trend
Oct12
Oct13
Oct14
Oct15
Oct16
Oct17
Oct18
Oct19
Oct20
Oct21
Sloan Ratio %
1.40
0.21
10.08
-3.66
0.63
Photronics Quarterly Data
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Sloan Ratio %
0.35
-1.17
0.63
-0.57
-2.95
Competitive Comparison
For the Semiconductor Equipment & Materials subindustry, Photronics'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.
Photronics Sloan Ratio % Distribution
For the Semiconductors industry and Technology sector, Photronics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Photronics's Sloan Ratio % falls into.
Photronics 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.
Photronics's Sloan Ratio for the fiscal year that ended in Oct. 2021 is calculated as
Photronics's Net Income for the trailing twelve months (TTM) ended in Apr. 2022 was 17.076 (Jul. 2021 ) + 19.811 (Oct. 2021 ) + 23.064 (Jan. 2022 ) + 27.432 (Apr. 2022 ) = $87.4 Mil.
Photronics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2022 was 54.877 (Jul. 2021 ) + 37.676 (Oct. 2021 ) + 59.13 (Jan. 2022 ) + 44.159 (Apr. 2022 ) = $195.8 Mil.
Photronics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2022 was -18.798 (Jul. 2021 ) + -16.798 (Oct. 2021 ) + -19.218 (Jan. 2022 ) + -14.396 (Apr. 2022 ) = $-69.2 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.
Photronics (NAS:PLAB) 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 Apr. 2022, Photronics has a Sloan Ratio of -2.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Photronics Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Photronics's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Photronics is a U.S.-based company that is principally engaged in manufacturing photomasks. The photomasks are photographic quartz plates that contain microscopic images of electronic circuits that are used as a component in the manufacture of integrated circuits and flat-panel displays. The revenue from products designed for integrated circuits production accounts for the majority of total revenue, with the rest derived from products for flat-panel display production. The company's assets are located in Taiwan, Korea, and the United States. It generates revenue worldwide, including the United States, Europe, Taiwan, Korea, China, and elsewhere in Asia, with Asia contributing the majority of total revenue.
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