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 Feb. 2024, Destiny Media Technologies has a Sloan Ratio of 8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Destiny Media 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 Destiny Media Technologies's Sloan Ratio %
For the Software - Application subindustry, Destiny Media 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.
Destiny Media Technologies's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Destiny Media Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Destiny Media Technologies's Sloan Ratio % falls into.
Destiny Media 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.
Destiny Media Technologies's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 0.107 (May. 2023 ) + -0.029 (Aug. 2023 ) + 0.25 (Nov. 2023 ) + -0.13 (Feb. 2024 ) = $0.20 Mil.
Destiny Media Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 0.106 (May. 2023 ) + 0.198 (Aug. 2023 ) + 0.189 (Nov. 2023 ) + -0.056 (Feb. 2024 ) = $0.44 Mil.
Destiny Media Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -0.252 (May. 2023 ) + -0.007 (Aug. 2023 ) + -0.177 (Nov. 2023 ) + -0.104 (Feb. 2024 ) = $-0.54 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.
Destiny Media Technologies (OTCPK:DSNY) 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 Feb. 2024, Destiny Media Technologies has a Sloan Ratio of 8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Destiny Media Technologies Sloan Ratio % Related Terms
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Destiny Media Technologies (Destiny Media Technologies) Business Description
Destiny Media Technologies Inc is a provider of secure digital content distribution and promotion solutions. The company operates solely in the digital media software segment. Its predominant services are Clipstream which enables any non-technical user to upload videos that will play on all modern web browsers and Play MPE, a digital distribution service that is used commercially by the recording industry. Destiny services are based on proprietary security, watermarking and instant play streaming media technologies. It also offers audio and video streaming solutions and secure file distribution to customers around the globe.
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