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.
Nano Dimension's Sloan Ratio for the quarter that ended in Dec. 2023 was 20.40%.
As of Dec. 2023, Nano Dimension has a Sloan Ratio of 20.40%, indicating there is a warning stage of accrual build up.
Nano Dimension Sloan Ratio % Historical Data
The historical data trend for Nano Dimension'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 Nano Dimension's Sloan Ratio %
For the Computer Hardware subindustry, Nano Dimension'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.
Nano Dimension's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Nano Dimension's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nano Dimension's Sloan Ratio % falls into.
Nano Dimension 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.
Nano Dimension's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Nano Dimension's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 22.222 (Mar. 2023 ) + -9.119 (Jun. 2023 ) + -66.604 (Sep. 2023 ) + -1.049 (Dec. 2023 ) = $-54.55 Mil.
Nano Dimension's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -27.953 (Mar. 2023 ) + -28.163 (Jun. 2023 ) + -19.545 (Sep. 2023 ) + -29.408 (Dec. 2023 ) = $-105.07 Mil.
Nano Dimension's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -225.38 (Mar. 2023 ) + 75.577 (Jun. 2023 ) + 122.708 (Sep. 2023 ) + -139.505 (Dec. 2023 ) = $-166.60 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.
Nano Dimension (NAS:NNDM) 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, Nano Dimension has a Sloan Ratio of 20.40%, indicating there is a warning stage of accrual build up.
Nano Dimension Sloan Ratio % Related Terms
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Nano Dimension (Nano Dimension) Business Description
Nano Dimension Ltd is a provider of intelligent machines for the fabrication of Additively Manufactured Electronics (AME). High-fidelity active electronic and electromechanical subassemblies are integral enablers of autonomous intelligent drones, cars, satellites, smartphones, and in vivo medical devices. It necessitates iterative development, IP safety, fast time-to-market and device performance gains, thereby mandating AME for in-house, rapid prototyping and production. Nano Dimension machines serve cross-industry needs by depositing proprietary consumable conductive and dielectric materials simultaneously, while concurrently integrating in-situ capacitors, antennas, coils, transformers and electromechanical components, to function at an unprecedented performance.
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