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.
Video Display's Sloan Ratio for the quarter that ended in Nov. 2023 was -12.89%.
As of Nov. 2023, Video Display has a Sloan Ratio of -12.89%, indicating there is a warning stage of accrual build up.
Video Display Sloan Ratio % Historical Data
The historical data trend for Video Display'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 Video Display's Sloan Ratio %
For the Computer Hardware subindustry, Video Display'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.
Video Display's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Video Display's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Video Display's Sloan Ratio % falls into.
Video Display 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.
Video Display's Sloan Ratio for the fiscal year that ended in Feb. 2023 is calculated as
Video Display's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was -1.05 (Feb. 2023 ) + -0.297 (May. 2023 ) + 0.201 (Aug. 2023 ) + -0.408 (Nov. 2023 ) = $-1.55 Mil.
Video Display's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was 0.025 (Feb. 2023 ) + -0.228 (May. 2023 ) + -0.503 (Aug. 2023 ) + -0.2 (Nov. 2023 ) = $-0.91 Mil.
Video Display's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was 0.001 (Feb. 2023 ) + 0.01 (May. 2023 ) + 0.019 (Aug. 2023 ) + 0.002 (Nov. 2023 ) = $0.03 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.
Video Display (OTCPK:VIDE) 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, Video Display has a Sloan Ratio of -12.89%, indicating there is a warning stage of accrual build up.
Video Display Sloan Ratio % Related Terms
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Video Display (Video Display) Business Description
Video Display Corp is a provider and manufacturer of video products, components, and systems for the visual display and presentation of electronic information media in a range of requirements and environments. It designs, engineers, manufactures, markets, distributes, and installs display products and systems, from basic components to systems, for Government, military, aerospace, medical, industrial, and commercial organizations. The company operates in one segment which is simulation, training, and display products. Its products lines include Dome Aircraft Simulator Display Systems, Multi-Faceted Aircraft Simulator Display Systems, Video Walls for Broadcast and Control Centers, Rugged Flat Panel Displays and Computers, Projector and Monitor Upgrades, and Projection Screens.
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