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ArthroCare (FRA:BQK) Sloan Ratio % : 12.22% (As of Mar. 2014)


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What is ArthroCare 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.

ArthroCare's Sloan Ratio for the quarter that ended in Mar. 2014 was 12.22%.

As of Mar. 2014, ArthroCare has a Sloan Ratio of 12.22%, indicating there is a warning stage of accrual build up.


ArthroCare Sloan Ratio % Historical Data

The historical data trend for ArthroCare'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.

* Premium members only.

ArthroCare Sloan Ratio % Chart

ArthroCare Annual Data
Trend Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.29 -7.60 -14.97 9.97 6.51

ArthroCare Quarterly Data
Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.35 -6.93 5.12 6.59 12.22

Competitive Comparison of ArthroCare's Sloan Ratio %

For the Medical Devices subindustry, ArthroCare'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.


ArthroCare's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, ArthroCare's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where ArthroCare's Sloan Ratio % falls into.



ArthroCare 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.

ArthroCare's Sloan Ratio for the fiscal year that ended in Dec. 2013 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2013 )-Cash Flow from Operations (A: Dec. 2013 )
-Cash Flow from Investing (A: Dec. 2013 ))/Total Assets (A: Dec. 2013 )
=(19.021-52.885
--62.095)/433.723
=6.51%

ArthroCare's Sloan Ratio for the quarter that ended in Mar. 2014 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2014 )
=(15.345-24.788
--59.923)/413.14
=12.22%

ArthroCare's Net Income for the trailing twelve months (TTM) ended in Mar. 2014 was -5.138 (Jun. 2013 ) + 7.683 (Sep. 2013 ) + 8.304 (Dec. 2013 ) + 4.496 (Mar. 2014 ) = €15.3 Mil.
ArthroCare's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2014 was 19.738 (Jun. 2013 ) + 10.773 (Sep. 2013 ) + 9.159 (Dec. 2013 ) + -14.882 (Mar. 2014 ) = €24.8 Mil.
ArthroCare's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2014 was -4.856 (Jun. 2013 ) + -45.223 (Sep. 2013 ) + -5.667 (Dec. 2013 ) + -4.177 (Mar. 2014 ) = €-59.9 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.


ArthroCare  (FRA:BQK) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2014, ArthroCare has a Sloan Ratio of 12.22%, indicating there is a warning stage of accrual build up.


ArthroCare Sloan Ratio % Related Terms

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ArthroCare (FRA:BQK) Business Description

Traded in Other Exchanges
N/A
Address
ArthroCare was incorporated in California in 1993 and reincorporated in Delaware in 1995. The Company is a multi-business medical device Company that develops, manufactures and markets minimally invasive surgical products, many of which are based on its patented Coblation(r) technology. The Company has grown well beyond its roots in arthroscopy to capitalize on numerous market opportunities across several medical specialties, improving many existing soft-tissue surgical procedures and enabling new minimally invasive procedures. With its innovative technologies, the Company is improving the lives of individuals suffering from conditions as diverse as torn rotator cuffs and anterior cruciate ligaments to herniated discs and enlarged tonsils/tonsillitis. The Company currently markets minimally invasive surgical products across three core business units-ArthroCare Sports Medicine, which include shoulder and knee arthroscopic products; ArthroCare Spine, which include spinal and neurosurgery products; and ArthroCare Ear, Nose and Throat, which include ear, nose, throat and the Visage(r) cosmetic products; - but also has developed, manufactured and marketed Coblation-based and complementary products for application in neurology, cosmetic surgery, urology and gynecology, with research continuing in additional areas. In each of its core business units, the Company is focusing on driving the application of enabling technologies, primarily for plasma-based soft tissue removal, and increasing the number of minimally invasive procedures being performed. The Company is marketing and selling its arthroscopic/sports medicine, spinal surgery, ENT and cosmetic surgery products using a combination of distributors supported by regional sales mangers, a direct sales force and corporate partners to sell its products both domestically and internationally. The Company owns over 170 issued U.S. patents and over 195 issued international patents. The Company's products are considered medical devices and are subject to regulation in the United States, with the approval of FDA for each of its products. Its primary competitors include Medtronic, Inc., Smith & Nephew, Stryker Corporation, Johnson & Johnson, Olympus (through its subsidiary Gyrus) and Arthrex, Inc.

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