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.
Deswell Industries's Sloan Ratio for the quarter that ended in Sep. 2023 was 1.06%.
As of Sep. 2023, Deswell Industries has a Sloan Ratio of 1.06%, indicating the company is in the safe zone and there is no funny business with accruals.
Deswell Industries Sloan Ratio % Historical Data
The historical data trend for Deswell Industries'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 Deswell Industries's Sloan Ratio %
For the Electronic Components subindustry, Deswell Industries'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.
Deswell Industries's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Deswell Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Deswell Industries's Sloan Ratio % falls into.
Deswell Industries 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.
Deswell Industries's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Deswell Industries's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 2.619 (Mar. 2023 ) + 3.557 (Sep. 2023 ) = $6.18 Mil.
Deswell Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 9.025 (Mar. 2023 ) + 4.964 (Sep. 2023 ) = $13.99 Mil.
Deswell Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -0.848 (Mar. 2023 ) + -8.149 (Sep. 2023 ) = $-9.00 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.
Deswell Industries (NAS:DSWL) 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 Sep. 2023, Deswell Industries has a Sloan Ratio of 1.06%, indicating the company is in the safe zone and there is no funny business with accruals.
Deswell Industries Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Deswell Industries's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Deswell Industries (Deswell Industries) Business Description
Deswell Industries Inc is engaged in the manufacturing and selling of injection-molded plastic parts and components. In addition, it also offers manufacturing services for electronic products and subassemblies and manufactures metallic molds and accessory parts for original equipment manufacturers and contract manufacturers. The company conducts all of its manufacturing activities at separate plastics, electronics and metallic operation factories located in the People's Republic of China. It operates through the Plastic Injection Molding and Electronic Products Assembling segments. The firm offers products such as automobile components, medical testing equipment, parts for audio equipment, av receivers, active subwoofers, digital system key sets, communication products and others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
DSWL has been successfully added to your 