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.
GigaCloud Technology's Sloan Ratio for the quarter that ended in Mar. 2024 was 8.17%.
As of Mar. 2024, GigaCloud Technology has a Sloan Ratio of 8.17%, indicating the company is in the safe zone and there is no funny business with accruals.
GigaCloud Technology Sloan Ratio % Historical Data
The historical data trend for GigaCloud Technology'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 GigaCloud Technology's Sloan Ratio %
For the Software - Infrastructure subindustry, GigaCloud Technology'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.
GigaCloud Technology's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, GigaCloud Technology's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where GigaCloud Technology's Sloan Ratio % falls into.
GigaCloud Technology 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.
GigaCloud Technology's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
GigaCloud Technology's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 18.39 (Jun. 2023 ) + 24.202 (Sep. 2023 ) + 35.575 (Dec. 2023 ) + 27.195 (Mar. 2024 ) = $105.4 Mil.
GigaCloud Technology's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 18.295 (Jun. 2023 ) + 44.081 (Sep. 2023 ) + 50.73 (Dec. 2023 ) + 15.309 (Mar. 2024 ) = $128.4 Mil.
GigaCloud Technology's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.021 (Jun. 2023 ) + -9.163 (Sep. 2023 ) + -81.226 (Dec. 2023 ) + -12.468 (Mar. 2024 ) = $-102.9 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.
GigaCloud Technology (NAS:GCT) 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, GigaCloud Technology has a Sloan Ratio of 8.17%, indicating the company is in the safe zone and there is no funny business with accruals.
GigaCloud Technology Sloan Ratio % Related Terms
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GigaCloud Technology (GigaCloud Technology) Business Description
GigaCloud Technology Inc end-to-end B2B e-commerce solutions for large parcel merchandise. Its B2B e-commerce platform, which refers to as the GigaCloud Marketplace, integrates everything from discovery, payments, and logistics tools into one easy-to-use platform. It offers online and offline integrated cross-border transaction and delivery services for furniture and large merchandise. Its marketplace seamlessly connects manufacturers in Asia, with resellers in the U.S., Asia, and Europe, to execute cross-border transactions with confidence, speed, and efficiency. It offers a truly comprehensive solution that transports products from the manufacturer's warehouse to end customers, all at one fixed price.
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