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.
CPS Technologies's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.56%.
As of Mar. 2024, CPS Technologies has a Sloan Ratio of -2.56%, indicating the company is in the safe zone and there is no funny business with accruals.
CPS Technologies Sloan Ratio % Historical Data
The historical data trend for CPS Technologies'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 CPS Technologies's Sloan Ratio %
For the Electronic Components subindustry, CPS Technologies'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.
CPS Technologies's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, CPS Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CPS Technologies's Sloan Ratio % falls into.
CPS Technologies 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.
CPS Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
CPS Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 0.601 (Jun. 2023 ) + 0.171 (Sep. 2023 ) + 0.14 (Dec. 2023 ) + -0.143 (Mar. 2024 ) = $0.77 Mil.
CPS Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1.555 (Jun. 2023 ) + 0.235 (Sep. 2023 ) + 0.197 (Dec. 2023 ) + 0.129 (Mar. 2024 ) = $2.12 Mil.
CPS Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.257 (Jun. 2023 ) + -0.134 (Sep. 2023 ) + -0.151 (Dec. 2023 ) + -0.263 (Mar. 2024 ) = $-0.81 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.
CPS Technologies (NAS:CPSH) 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. 2024, CPS Technologies has a Sloan Ratio of -2.56%, indicating the company is in the safe zone and there is no funny business with accruals.
CPS Technologies Sloan Ratio % Related Terms
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CPS Technologies (CPS Technologies) Business Description
CPS Technologies Corp provides material solutions to the transportation, automotive, energy, computing/Internet, telecommunications, aerospace, defense, and oil and gas end markets. Its primary material solution is metal matrix composites (MMCs), which are a class of materials consisting of a combination of metal and ceramic. The company designs, manufactures and sells custom MMC components, which manages the performance and reliability of systems in the end markets. It also provides baseplates and housings used in radar, satellite and avionics applications. The company provides lids and heat spreaders used with integrated circuits in Internet switches and routers.
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