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Altera (FRA:ALR) Sloan Ratio % : 11.19% (As of Sep. 2015)


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What is Altera Sloan Ratio %?

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.

Altera's Sloan Ratio for the quarter that ended in Sep. 2015 was 11.19%.

As of Sep. 2015, Altera has a Sloan Ratio of 11.19%, indicating there is a warning stage of accrual build up.


Altera Sloan Ratio % Historical Data

The historical data trend for Altera'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.

* Premium members only.

Altera Sloan Ratio % Chart

Altera Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.35 -0.42 15.82 18.12 1.37

Altera Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.69 1.45 4.39 11.72 11.19

Competitive Comparison of Altera's Sloan Ratio %

For the Semiconductors subindustry, Altera'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.


Altera's Sloan Ratio % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Altera's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Altera's Sloan Ratio % falls into.



Altera 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.

Altera's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2014 )-Cash Flow from Operations (A: Dec. 2014 )
-Cash Flow from Investing (A: Dec. 2014 ))/Total Assets (A: Dec. 2014 )
=(383.326-540.3
--220.1)/4601.797
=1.37%

Altera's Sloan Ratio for the quarter that ended in Sep. 2015 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2015 )
=(295.255-476.838
--768.395)/5243.7
=11.19%

Altera's Net Income for the trailing twelve months (TTM) ended in Sep. 2015 was 90.127 (Dec. 2014 ) + 87.643 (Mar. 2015 ) + 62.672 (Jun. 2015 ) + 54.813 (Sep. 2015 ) = €295 Mil.
Altera's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 122.281 (Dec. 2014 ) + 126.249 (Mar. 2015 ) + 79.495 (Jun. 2015 ) + 148.813 (Sep. 2015 ) = €477 Mil.
Altera's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2015 was -170.836 (Dec. 2014 ) + -224.392 (Mar. 2015 ) + -352.063 (Jun. 2015 ) + -21.104 (Sep. 2015 ) = €-768 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.


Altera  (FRA:ALR) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2015, Altera has a Sloan Ratio of 11.19%, indicating there is a warning stage of accrual build up.


Altera Sloan Ratio % Related Terms

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Altera (FRA:ALR) Business Description

Traded in Other Exchanges
N/A
Address
Altera Corp was founded in 1983 and reincorporated in the State of Delaware in 1997. It designs and sells programmable logic devices, HardCopy application-specific integrated circuit devices, power system-on-chip devices, pre-defined design building blocks known as intellectual property cores, and associated development tools. Its PLDs, which consist of field-programmable gate arrays, including those referred to as systems-on-chip FPGAs which incorporate hard embedded processor cores, and complex programmable logic devices. FPGAs and CPLDs are standard semiconductor integrated circuits that are manufactured as standard chips that its customers program to perform desired logic and processing functions within their electronic systems. With its HardCopy devices it offers its customers a migration path from a PLD to a low-cost, high-volume, non-programmable implementation of their designs. Its customers can license IP cores for implementation of standard functions in their PLD designs. Customers develop, compile, and verify their PLD designs, and then program their designs into its PLDs using its proprietary development software, which operates on personal computers and engineering workstations. Its products serve a range of customers within the Telecom and Wireless, Industrial Automation, Military and Automotive, Networking, Computer and Storage and Other vertical markets. Its geographical segments include US, Japan, China, Europe and Other. Its customers design electronic systems that typically use three types of digital integrated circuits: Processors, which include microprocessors, microcontrollers, graphics processors, and digital signal processors, control central computing tasks and signal processing; Memory stores programming instructions and data; and Logic manages the interchange and manipulation of digital signals within a system. It classifies its products into three categories: New, Mainstream, and Mature and Other Products. New Products include the Stratix V, Stratix IV, Arria 10, Arria V, Arria II, Cyclone V, Cyclone IV, MAX 10 FPGAs, MAX V CPLDs, HardCopy IV devices and Enpirion PowerSoCs. Mainstream Products include the Stratix III, Cyclone III, MAX II and HardCopy III devices. Mature and Other Products include the Stratix II, Stratix, Arria GX, Cyclone II, Cyclone, Classic, MAX 3000A, MAX 7000, MAX 7000A, MAX 7000B, MAX 7000S, MAX 9000, HardCopy II, HardCopy, FLEXseries, APEX series, Mercury, Excalibur devices, configuration and other devices, intellectual property cores, and software and other tools. The Company competes with PLD vendors such as Lattice Semiconductor Corporation, Microsemi Corporation, and Xilinx Inc. Other semiconductor companies with whom it may compete includes Analog Devices Inc., Atmel Corporation, Avago Technologies, Broadcom Corporation, Cavium, Inc., Freescale Semiconductor Inc., GlobalFoundries Inc., HiSilicon Technologies Company, Intel Corporation ("Intel"), Linear Technology Corporation