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.
As of Jun. 2023, Nikon SLM Solutions AG has a Sloan Ratio of 9.51%, indicating the company is in the safe zone and there is no funny business with accruals.
Nikon SLM Solutions AG 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 Nikon SLM Solutions AG's Sloan Ratio %
For the Specialty Industrial Machinery subindustry, Nikon SLM Solutions AG'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.
Nikon SLM Solutions AG's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Nikon SLM Solutions AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nikon SLM Solutions AG's Sloan Ratio % falls into.
Nikon SLM Solutions AG 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.
Nikon SLM Solutions AG's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Nikon SLM Solutions AG's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was -2.457 (Sep. 2022 ) + -13.181 (Dec. 2022 ) + -8.973 (Mar. 2023 ) + -7.286 (Jun. 2023 ) = €-31.9 Mil.
Nikon SLM Solutions AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was -2.46 (Sep. 2022 ) + -7.703 (Dec. 2022 ) + -14.195 (Mar. 2023 ) + -6.439 (Jun. 2023 ) = €-30.8 Mil.
Nikon SLM Solutions AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -3.246 (Sep. 2022 ) + -4.559 (Dec. 2022 ) + -4.441 (Mar. 2023 ) + -6.039 (Jun. 2023 ) = €-18.3 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.
Nikon SLM Solutions AG (LTS:0QUC) 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 Jun. 2023, Nikon SLM Solutions AG has a Sloan Ratio of 9.51%, indicating the company is in the safe zone and there is no funny business with accruals.
Nikon SLM Solutions AG Sloan Ratio % Related Terms
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Nikon SLM Solutions AG (LTS:0QUC) Business Description
Nikon SLM Solutions AG Formerly SLM Solutions Group AG is a developer of industrial metal 3D printing machines focused on metal additive manufacturing and multi-laser technology for the aerospace and defense, automotive, energy, healthcare, tooling, and research markets. The company focuses on the development, production, and sale of machines for selective laser melting. It also focuses on research and development of technology in the manufacturing area, providing customer training sessions, consulting and financing services, machine-related services, the sale of replacement parts and accessories, and also the sale of merchandise. SLM manages its business in two segments namely the Machine Sales segment and the After-sales segment.
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