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.
Electro-Sensors's Sloan Ratio for the quarter that ended in Dec. 2023 was -13.53%.
As of Dec. 2023, Electro-Sensors has a Sloan Ratio of -13.53%, indicating there is a warning stage of accrual build up.
Electro-Sensors Sloan Ratio % Historical Data
The historical data trend for Electro-Sensors'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 Electro-Sensors's Sloan Ratio %
For the Scientific & Technical Instruments subindustry, Electro-Sensors'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.
Electro-Sensors's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Electro-Sensors's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Electro-Sensors's Sloan Ratio % falls into.
Electro-Sensors 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.
Electro-Sensors's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Electro-Sensors's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -0.044 (Mar. 2023 ) + 0.116 (Jun. 2023 ) + 0.008 (Sep. 2023 ) + 0.195 (Dec. 2023 ) = $0.28 Mil.
Electro-Sensors's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.148 (Mar. 2023 ) + 0.012 (Jun. 2023 ) + 0.228 (Sep. 2023 ) + 0.038 (Dec. 2023 ) = $0.13 Mil.
Electro-Sensors's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.956 (Mar. 2023 ) + 0.049 (Jun. 2023 ) + -1.924 (Sep. 2023 ) + 5.931 (Dec. 2023 ) = $2.10 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.
Electro-Sensors (NAS:ELSE) 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, Electro-Sensors has a Sloan Ratio of -13.53%, indicating there is a warning stage of accrual build up.
Electro-Sensors Sloan Ratio % Related Terms
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Electro-Sensors (Electro-Sensors) Business Description
Electro-Sensors Inc is engaged in manufacturing and selling a variety of monitoring systems that measure actual machine production and operation rates, as well as systems that regulate the speed of related machines in production processes. Its speed monitoring systems compare revolutions per minute or speed against acceptable rates as determined by a customer. It also includes a line of products that measure production counts or rates, such as parts, gallons, or board feet, alarm systems, tachometers, and other devices that translate impulses from the sensors into alarm signals, computer inputs, or digital displays that are usable by the customer.
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