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.
Coda Octopus Group's Sloan Ratio for the quarter that ended in Jan. 2024 was 3.87%.
As of Jan. 2024, Coda Octopus Group has a Sloan Ratio of 3.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Coda Octopus Group Sloan Ratio % Historical Data
The historical data trend for Coda Octopus Group'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 Coda Octopus Group's Sloan Ratio %
For the Aerospace & Defense subindustry, Coda Octopus Group'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.
Coda Octopus Group's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Coda Octopus Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Coda Octopus Group's Sloan Ratio % falls into.
Coda Octopus Group 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.
Coda Octopus Group's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as
Coda Octopus Group's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 1.008 (Apr. 2023 ) + 1.039 (Jul. 2023 ) + -0.321 (Oct. 2023 ) + 0.63 (Jan. 2024 ) = $2.36 Mil.
Coda Octopus Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -1.246 (Apr. 2023 ) + 1.646 (Jul. 2023 ) + 1.005 (Oct. 2023 ) + -0.298 (Jan. 2024 ) = $1.11 Mil.
Coda Octopus Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -0.118 (Apr. 2023 ) + -0.285 (Jul. 2023 ) + -1.011 (Oct. 2023 ) + 0.609 (Jan. 2024 ) = $-0.81 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.
Coda Octopus Group (NAS:CODA) 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, Coda Octopus Group has a Sloan Ratio of 3.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Coda Octopus Group Sloan Ratio % Related Terms
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Coda Octopus Group (Coda Octopus Group) Business Description
Coda Octopus Group Inc develops underwater technologies and equipment for imaging, mapping defense, and survey applications. It operates in two segments: Marine Technology Business and Marine Engineering Business. The Technology Business develops proprietary solutions for both the commercial and defense subsea market. Its solutions include hardware and software for Geophysical Systems, Motion & Positioning Systems, and Real-Time Volumetric Imaging Sonar. The Engineering Business segment provides engineering services to a range of clients in the defense markets. Its geographical segments are the Americas, Europe, Australia/Asia, and the Middle East/Africa. The majority of revenue is derived from the Marine Technology Business segment.
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