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.
Tel Instrument Electronics's Sloan Ratio for the quarter that ended in Dec. 2023 was 63.62%.
As of Dec. 2023, Tel Instrument Electronics has a Sloan Ratio of 63.62%, indicating there is a warning stage of accrual build up.
Tel Instrument Electronics Sloan Ratio % Historical Data
The historical data trend for Tel Instrument Electronics'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 Tel Instrument Electronics's Sloan Ratio %
For the Aerospace & Defense subindustry, Tel Instrument Electronics'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.
Tel Instrument Electronics's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Tel Instrument Electronics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tel Instrument Electronics's Sloan Ratio % falls into.
Tel Instrument Electronics 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.
Tel Instrument Electronics's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Tel Instrument Electronics's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -0.071 (Mar. 2023 ) + 0.295 (Jun. 2023 ) + -0.435 (Sep. 2023 ) + 0.134 (Dec. 2023 ) = $-0.08 Mil.
Tel Instrument Electronics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.123 (Mar. 2023 ) + 0.706 (Jun. 2023 ) + -6.888 (Sep. 2023 ) + -0.135 (Dec. 2023 ) = $-6.44 Mil.
Tel Instrument Electronics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.02 (Mar. 2023 ) + -0.014 (Jun. 2023 ) + -0.018 (Sep. 2023 ) + -0.001 (Dec. 2023 ) = $-0.05 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.
Tel Instrument Electronics (OTCPK:TIKK) 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, Tel Instrument Electronics has a Sloan Ratio of 63.62%, indicating there is a warning stage of accrual build up.
Tel Instrument Electronics Sloan Ratio % Related Terms
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Tel Instrument Electronics (Tel Instrument Electronics) Business Description
Tel Instrument Electronics Corp is a designer and manufacturer of avionics test and measurement solutions for the global commercial air transport, general aviation, and government, military aerospace, and defense markets. It designs, manufactures and sells instruments to test and measure, and calibrates and repairs airborne navigation and communication equipment. The company's reportable segments are Avionics government and Avionics commercial. The avionics government segment consists of the design, manufacture, and sale of test equipment to the U.S. and foreign governments and militaries. The Avionics commercial segment consists of design, manufacture, and sale of test equipment to domestic and foreign airlines. It generates a majority of its revenue from the Avionics Government segment.
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