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.
SMART Global Holdings's Sloan Ratio for the quarter that ended in Nov. 2023 was -28.37%.
As of Nov. 2023, SMART Global Holdings has a Sloan Ratio of -28.37%, indicating there is a warning stage of accrual build up.
SMART Global Holdings Sloan Ratio % Historical Data
The historical data trend for SMART Global Holdings'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 SMART Global Holdings's Sloan Ratio %
For the Semiconductors subindustry, SMART Global Holdings'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.
SMART Global Holdings's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, SMART Global Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SMART Global Holdings's Sloan Ratio % falls into.
SMART Global Holdings 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.
SMART Global Holdings's Sloan Ratio for the fiscal year that ended in Aug. 2023 is calculated as
SMART Global Holdings's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was -27.219 (Feb. 2023 ) + -24.455 (May. 2023 ) + -140.844 (Aug. 2023 ) + -19.921 (Nov. 2023 ) = $-212 Mil.
SMART Global Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was 100.535 (Feb. 2023 ) + 41.038 (May. 2023 ) + 36.799 (Aug. 2023 ) + 31.478 (Nov. 2023 ) = $210 Mil.
SMART Global Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was -13.353 (Feb. 2023 ) + -12.826 (May. 2023 ) + -48.747 (Aug. 2023 ) + 115.298 (Nov. 2023 ) = $40 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.
SMART Global Holdings (NAS:SGH) 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 Nov. 2023, SMART Global Holdings has a Sloan Ratio of -28.37%, indicating there is a warning stage of accrual build up.
SMART Global Holdings Sloan Ratio % Related Terms
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SMART Global Holdings (SMART Global Holdings) Business Description
SMART Global Holdings Inc is a designer and manufacturer of electronic products focused on memory and computing technology areas. It specializes in application-specific product development and support for customers in the enterprise, government and original equipment manufacturer (OEM) markets. It operates in three segments such as Memory Solutions in which Memory Solutions group, under our SMART Modular brand, provides high performance and reliable memory solutions through the design, development and advanced packaging of leading-edge to extended lifecycle products. Intelligent Platform Solutions in their IPS group, under our Penguin Solutions and newly acquired Stratus Technologies brands, offers specialized platform solutions and services for high-performance computing.
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