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.
As of Jan. 2024, Comtech Telecommunications has a Sloan Ratio of -1.07%, indicating the company is in the safe zone and there is no funny business with accruals.
Comtech Telecommunications Sloan Ratio % Historical Data
* 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 Comtech Telecommunications's Sloan Ratio %
For the Communication Equipment subindustry, Comtech Telecommunications'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.
Comtech Telecommunications's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Comtech Telecommunications's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Comtech Telecommunications's Sloan Ratio % falls into.
Comtech Telecommunications 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.
Comtech Telecommunications's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was -7.458 (Apr. 2023 ) + -3.54 (Jul. 2023 ) + -1.437 (Oct. 2023 ) + -10.558 (Jan. 2024 ) = $-23.0 Mil.
Comtech Telecommunications's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 16.609 (Apr. 2023 ) + -4.256 (Jul. 2023 ) + -14.545 (Oct. 2023 ) + -26.66 (Jan. 2024 ) = $-28.9 Mil.
Comtech Telecommunications's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -4.955 (Apr. 2023 ) + -3.438 (Jul. 2023 ) + -3.216 (Oct. 2023 ) + 28.152 (Jan. 2024 ) = $16.5 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.
Comtech Telecommunications (NAS:CMTL) 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 Jan. 2024, Comtech Telecommunications has a Sloan Ratio of -1.07%, indicating the company is in the safe zone and there is no funny business with accruals.
Comtech Telecommunications Sloan Ratio % Related Terms
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Comtech Telecommunications (Comtech Telecommunications) Business Description
Comtech Telecommunications Corp is a provider of modern communications solutions. The company is engaged in designing, developing, producing and marketing products, systems, and services for communications solutions. It is engaged in two business segments, Satellite and Space Communications and Terrestrial and Wireless Networks. Majority of sales are generated from Satellite and Space Communications segment.
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