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.
Staar Surgical Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -21.66%.
As of Mar. 2024, Staar Surgical Co has a Sloan Ratio of -21.66%, indicating there is a warning stage of accrual build up.
Staar Surgical Co Sloan Ratio % Historical Data
The historical data trend for Staar Surgical Co'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 Staar Surgical Co's Sloan Ratio %
For the Medical Instruments & Supplies subindustry, Staar Surgical Co'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.
Staar Surgical Co's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Staar Surgical Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Staar Surgical Co's Sloan Ratio % falls into.
Staar Surgical Co 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.
Staar Surgical Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Staar Surgical Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 6.064 (Jun. 2023 ) + 4.817 (Sep. 2023 ) + 7.756 (Dec. 2023 ) + -3.339 (Mar. 2024 ) = $15.3 Mil.
Staar Surgical Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -6.306 (Jun. 2023 ) + -5.975 (Sep. 2023 ) + 31.969 (Dec. 2023 ) + 21.68 (Mar. 2024 ) = $41.4 Mil.
Staar Surgical Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 10.172 (Jun. 2023 ) + 31.84 (Sep. 2023 ) + 22.402 (Dec. 2023 ) + 16.187 (Mar. 2024 ) = $80.6 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.
Staar Surgical Co (NAS:STAA) 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 Mar. 2024, Staar Surgical Co has a Sloan Ratio of -21.66%, indicating there is a warning stage of accrual build up.
Staar Surgical Co Sloan Ratio % Related Terms
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Staar Surgical Co (Staar Surgical Co) Business Description
Staar Surgical Co is a manufacturer of lenses. It designs, develops, manufactures, and sells implantable lenses for the eye and delivery systems used to deliver the lenses into the eye. The company also make lenses which are used in surgery that treats cataracts. The company offers products are ICLs used in refractive surgery and IOLs used in cataract surgery. The company generated sales are from the ophthalmic surgical product segment.
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