What is Wavefront Technology Solutions Sloan Ratio %?
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.
* 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.
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Wavefront Technology Solutions Sloan Ratio % Chart
Competitive Comparison of Wavefront Technology Solutions's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, Wavefront Technology Solutions'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.
Wavefront Technology Solutions's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Wavefront Technology Solutions's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Wavefront Technology Solutions's Sloan Ratio % falls into.
Wavefront Technology Solutions 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.
Wavefront Technology Solutions's Net Income for the trailing twelve months (TTM) ended in May. 2022 was -0.204 (Aug. 2021 ) + -0.456 (Nov. 2021 ) + -0.339 (Feb. 2022 ) + -0.391 (May. 2022 ) = $-1.39 Mil.
Wavefront Technology Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2022 was -0.085 (Aug. 2021 ) + -0.314 (Nov. 2021 ) + -0.248 (Feb. 2022 ) + -0.38 (May. 2022 ) = $-1.03 Mil.
Wavefront Technology Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in May. 2022 was -0.008 (Aug. 2021 ) + -0.002 (Nov. 2021 ) + -0.009 (Feb. 2022 ) + -0.014 (May. 2022 ) = $-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.
Wavefront Technology Solutions (OTCPK:WFTSF) 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 May. 2022, Wavefront Technology Solutions has a Sloan Ratio of -19.53%, indicating earnings are more likely to be made up of accruals.
Wavefront Technology Solutions Sloan Ratio % Related Terms
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Wavefront Technology Solutions (Wavefront Technology Solutions) Business Description
Wavefront Technology Solutions Inc is a technology company providing solutions to oil and gas exploration and production companies to maximize oil and gas production. It has two processes namely the Powerwave process which is an injection technology that improves the flow of fluids in geological materials including sedimentary soils and fractured rock, and Primawave process which is an effective method for aiding in-situ (in-ground) environmental groundwater remediation clean-up strategies in contaminated sites. Geographically it earns key revenue from the Middle East.
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