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.
Transense Technologies's Sloan Ratio for the quarter that ended in Dec. 2023 was 11.89%.
As of Dec. 2023, Transense Technologies has a Sloan Ratio of 11.89%, indicating there is a warning stage of accrual build up.
Transense Technologies Sloan Ratio % Historical Data
* 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 Transense Technologies's Sloan Ratio %
For the Auto Parts subindustry, Transense 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.
Transense Technologies's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Transense Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Transense Technologies's Sloan Ratio % falls into.
Transense 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.
Transense Technologies's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Transense Technologies's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.997 (Jun. 2023 ) + 0.67 (Dec. 2023 ) = £1.67 Mil.
Transense Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0.824 (Jun. 2023 ) + 0.677 (Dec. 2023 ) = £1.50 Mil.
Transense Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.186 (Jun. 2023 ) + -0.256 (Dec. 2023 ) = £-0.44 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.
Transense Technologies (LSE:TRT) 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 Dec. 2023, Transense Technologies has a Sloan Ratio of 11.89%, indicating there is a warning stage of accrual build up.
Transense Technologies Sloan Ratio % Related Terms
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Transense Technologies (LSE:TRT) Business Description
Transense Technologies PLC is engaged in the provision of tyre management solutions. It develops, manufactures, and sells specialist Tyre probes and Transense tyre pressure monitoring technology (TPMS) monitoring solutions and associated technologies. The company development of non-contact batteryless sensors and their electronic interrogation systems for measuring pressure, temperature, and torque in automotive and non-automotive applications. Its operating segment includes SAW, Translogik, and iTrack royalties. The company generates maximum revenue from iTrack royalties segment. Geographically, it derives the majority of its revenue from Europe and has a presence in Chile; Australia; UK and North America; Japan, and the Rest of the World.
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