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.
SanDisk's Sloan Ratio for the quarter that ended in Mar. 2016 was -29.10%.
As of Mar. 2016, SanDisk has a Sloan Ratio of -29.10%, indicating there is a warning stage of accrual build up.
SanDisk Sloan Ratio % Historical Data
The historical data trend for SanDisk'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.
For the Computer Hardware subindustry, SanDisk'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.
SanDisk's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, SanDisk's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SanDisk's Sloan Ratio % falls into.
SanDisk 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.
SanDisk's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
SanDisk's Net Income for the trailing twelve months (TTM) ended in Mar. 2016 was 80.973 (Jun. 2015 ) + 133.011 (Sep. 2015 ) + 135.469 (Dec. 2015 ) + 78.353 (Mar. 2016 ) = $428 Mil.
SanDisk's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 28.864 (Jun. 2015 ) + 274.972 (Sep. 2015 ) + 433.979 (Dec. 2015 ) + 355.143 (Mar. 2016 ) = $1,093 Mil.
SanDisk's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 was 317.126 (Jun. 2015 ) + 26.759 (Sep. 2015 ) + 342.054 (Dec. 2015 ) + 1416.432 (Mar. 2016 ) = $2,102 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.
SanDisk (NAS:SNDK) 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 Mar. 2016, SanDisk has a Sloan Ratio of -29.10%, indicating there is a warning stage of accrual build up.
SanDisk Sloan Ratio % Related Terms
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SanDisk Corp was incorporated in Delaware in June 1988. The Company designs, develops and manufactures data storage solutions in a variety of form factors using flash memory, controller, firmware and software technologies. Its solutions include SSDs, embedded products, removable cards, universal serial bus, or USB, drives, wireless media drives, digital media players and wafers and components. The Company's SSD products are used in both client computing platforms and enterprise data centers. Its embedded flash products are used in mobile phones, tablets, computing platforms, imaging devices, and many other products. Its removable cards are used in consumer electronics devices such as mobile phones, tablets, digital cameras, gaming devices and personal computers or PCs. The Company operates in one segment, flash memory storage products. It operates in United States, China, Taiwan, Other Asia-Pacific & Europe, Middle East and Africa. The Company competes with NAND flash memory manufacturers, including Hynix, Intel, Micron Technology, Inc., or Micron, Samsung and Toshiba. The Company's primary competitors currently include, among others, Kingston Technology Company, Inc., or Kingston, Lexar Media, Inc., or Lexar, a subsidiary of Micron, PNY Technologies, Inc., or PNY, Samsung, Sony and Transcend Information, Inc., or Transcend. In the USB flash drive market. SanDisk is the Company's trademark, and is registered in the U.S. and other countries.
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