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Qualcomm (NAS:QCOM) Sloan Ratio %

: 14.92% (As of Dec. 2022)
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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.

Qualcomm's Sloan Ratio for the quarter that ended in Dec. 2022 was 14.92%.

As of Dec. 2022, Qualcomm has a Sloan Ratio of 14.92%, indicating there is a warning stage of accrual build up.


Qualcomm Sloan Ratio % Historical Data

The historical data trend for Qualcomm'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.

Qualcomm Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -34.39 -6.35 13.06 4.52 19.68

Qualcomm Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.62 6.58 20.41 19.68 14.92

Competitive Comparison

For the Semiconductors subindustry, Qualcomm'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.

   

Qualcomm Sloan Ratio % Distribution

For the Semiconductors industry and Technology sector, Qualcomm's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Qualcomm's Sloan Ratio % falls in comparison to its industry or sector. The grey bar indicates the Sloan Ratio %'s extreme value range as defined by GuruFocus.



Qualcomm 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.

Qualcomm's Sloan Ratio for the fiscal year that ended in Sep. 2022 is calculated as

Sloan Ratio=(Net Income (A: Sep. 2022 )-Cash Flow from Operations (A: Sep. 2022 )
-Cash Flow from Investing (A: Sep. 2022 ))/Total Assets (A: Sep. 2022 )
=(12936-9096
--5804)/49014
=19.68%

Qualcomm's Sloan Ratio for the quarter that ended in Dec. 2022 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2022 )
=(11772-10134
--5825)/50014
=14.92%

Qualcomm's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was 2934 (Mar. 2022 ) + 3730 (Jun. 2022 ) + 2873 (Sep. 2022 ) + 2235 (Dec. 2022 ) = $11,772 Mil.
Qualcomm's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2022 was 2698 (Mar. 2022 ) + 2895 (Jun. 2022 ) + 1446 (Sep. 2022 ) + 3095 (Dec. 2022 ) = $10,134 Mil.
Qualcomm's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2022 was -526 (Mar. 2022 ) + -4876 (Jun. 2022 ) + -290 (Sep. 2022 ) + -133 (Dec. 2022 ) = $-5,825 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.


Qualcomm  (NAS:QCOM) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2022, Qualcomm has a Sloan Ratio of 14.92%, indicating there is a warning stage of accrual build up.


Qualcomm Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of Qualcomm's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


Qualcomm (NAS:QCOM) Business Description

Qualcomm logo
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones and chips into automotive and Internet of Things markets.
Executives
Neil Martin officer: SVP, Finance and CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James J Cathey officer: Chief Commercial Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Ann C Chaplin officer: General Counsel&Corp Secretary 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Sylvia Acevedo director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Gregory N Johnson director C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Jean-pascal Tricoire director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Jamie S Miller director GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Heather S Ace officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500, SAN DIEGO CA 92130
Akash J. Palkhiwala officer: SVP & Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
David Wise officer: Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Erin L Polek officer: SVP Corporate Controller & CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Martin B Anstice director 4650 CUSHING PARKWAY, FREMONT CA 94538
Irene B Rosenfeld director 999 VANDERBILT BEACH ROAD, SUITE 601, NAPLES FL 34108
Steven M Mollenkopf director, officer: Chief Executive Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Neil Smit director C/O AMERICA ONLINE LATIN AMERICA, INC., 6600 N. ANDREWS AVE., SUITE 400, FT. LAUDERDALE FL 33309

Qualcomm (NAS:QCOM) Headlines

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