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.
Universal Electronics's Sloan Ratio for the quarter that ended in Dec. 2023 was -30.78%.
Warning Sign:
When sloan ratio (-30.78)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Universal Electronics has a Sloan Ratio of -30.78%, indicating earnings are more likely to be made up of accruals.
Universal Electronics Sloan Ratio % Historical Data
The historical data trend for Universal 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 Universal Electronics's Sloan Ratio %
For the Consumer Electronics subindustry, Universal 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.
Universal Electronics's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Universal Electronics's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Universal Electronics's Sloan Ratio % falls into.
Universal 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.
Universal Electronics's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Universal Electronics's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -61.363 (Mar. 2023 ) + -10.411 (Jun. 2023 ) + -19.362 (Sep. 2023 ) + -7.102 (Dec. 2023 ) = $-98.2 Mil.
Universal Electronics's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -2.025 (Mar. 2023 ) + 15.28 (Jun. 2023 ) + 6.821 (Sep. 2023 ) + 5.114 (Dec. 2023 ) = $25.2 Mil.
Universal Electronics's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -4.831 (Mar. 2023 ) + -4.271 (Jun. 2023 ) + -2.381 (Sep. 2023 ) + -2.394 (Dec. 2023 ) = $-13.9 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.
Universal Electronics (NAS:UEIC) 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, Universal Electronics has a Sloan Ratio of -30.78%, indicating earnings are more likely to be made up of accruals.
Universal Electronics Sloan Ratio % Related Terms
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Universal Electronics (Universal Electronics) Business Description
Universal Electronics Inc is a United States-based company that is principally engaged in developing and manufacturing a series of electronic products, including wireless control products, audio-video accessories, intelligent wireless automation components, and software. The company focuses on the subscription broadcast, consumer electronics and residential security markets, with customers consisting of subscription broadcasters, original equipment manufacturer, private-label brands, retailers, pro-security dealers, and companies in the computing industry. The company has a global presence and generates most of its total revenue from the United States.
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