Applied Digital (Applied Digital) Sloan Ratio % : 2.26% (As of Feb. 2024)

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What is Applied Digital 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.

Applied Digital's Sloan Ratio for the quarter that ended in Feb. 2024 was 2.26%.

As of Feb. 2024, Applied Digital has a Sloan Ratio of 2.26%, indicating the company is in the safe zone and there is no funny business with accruals.

Applied Digital Sloan Ratio % Historical Data

The historical data trend for Applied Digital'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.

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Applied Digital Sloan Ratio % Chart

Applied Digital Annual Data

Trend

May03

May04

May05

May06

May07

May08

May20

May21

May22

May23

Sloan Ratio %

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-136.28

18.72

19.36

10.88

Applied Digital Quarterly Data
	May08	Aug08	Nov08	Feb09	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Sloan Ratio %	Get a 7-Day Free Trial															7.98	10.88	12.44	10.84	2.26

Competitive Comparison of Applied Digital's Sloan Ratio %

For the Capital Markets subindustry, Applied Digital'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.

Applied Digital's Sloan Ratio % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Applied Digital's Sloan Ratio % distribution charts can be found below:

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

Applied Digital 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.

Applied Digital's Sloan Ratio for the fiscal year that ended in May. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: May. 2023 )	-	Cash Flow from Operations (A: May. 2023 )
	-	Cash Flow from Investing (A: May. 2023 ))	/	Total Assets (A: May. 2023 )
	=	(-44.646	-	58.735
	-	-132.088)	/	263.957
	=	10.88%

Applied Digital's Sloan Ratio for the quarter that ended in Feb. 2024 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Feb. 2024 )
	=	(-91.297	-	52.487
	-	-158.292)	/	643.168
	=	2.26%

Applied Digital's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was -6.473 (May. 2023 ) + -11.457 (Aug. 2023 ) + -10.529 (Nov. 2023 ) + -62.838 (Feb. 2024 ) = $-91.3 Mil.
Applied Digital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 4.591 (May. 2023 ) + 4.517 (Aug. 2023 ) + 4.539 (Nov. 2023 ) + 38.84 (Feb. 2024 ) = $52.5 Mil.
Applied Digital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -35.774 (May. 2023 ) + -40.541 (Aug. 2023 ) + -25.067 (Nov. 2023 ) + -56.91 (Feb. 2024 ) = $-158.3 Mil.

Applied Digital (NAS:APLD) 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 Feb. 2024, Applied Digital has a Sloan Ratio of 2.26%, indicating the company is in the safe zone and there is no funny business with accruals.

Applied Digital Sloan Ratio % Related Terms

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Applied Digital (Applied Digital) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Applied Digital Corp (NAS:APLD) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

3811 Turtle Creek Boulevard, Suite 2100, Dallas, TX, USA, 75219

Website

https://www.applieddigital.com

Applied Digital Corp designs, develops and operates next-generation datacenters across North America to provide digital infrastructure solutions to the rapidly growing high performance computing industry.

Executives

Virginia Moore	director	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN,INC., DALLAS TX 75219
Richard N Nottenburg	director	1303 EAST ALGONQUIN ROAD, SCHAUMBURG IL 60196
Michael Maniscalco	officer: Chief Technology Officer	3811 TURTLE CREEK BOULEVARD, SUITE 2100, DALLAS TX 75219
Wes Cummins	director, 10 percent owner, officer: CEO & Chairman	4505 LORRAINE AVE, DALLAS TX 75205
David Rench	officer: Chief Financial Officer	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Regina Ingel	officer: EVP - Operations	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Chuck Hastings	director	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Douglas S Miller	director	C/O TELENAV, INC., 4655 GREAT AMERICA PK, SUITE 300, SANTA CLARA CA 95054
Jason Zhang	director	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Kelli Mcdonald	director	3811 TURTLE CREEK BOULEVARD, SUITE 2100, C/O APPLIED BLOCKCHAIN, INC., DALLAS TX 75219
Richard S Rosenfeld	officer: CFO	105 STONEBRIDGE ROAD, MONTCLAIR NJ 07042
James A Schwartz	director	28 COTTRELL STREET, MYSTIC CT 06355
Riley Investment Partners Master Fund, L.p.	10 percent owner	11100 SANTA MONICA BOULEVARD, SUITE 810, LOS ANGELES CA 90025
Riley Investment Management Llc	10 percent owner	11100 SANTA MONICA BLVD., SUITE 810, LOS ANGELES CA 90025
Frank L Rees	director, officer: Executive Vice-President