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.
CommScope Holding Co's Sloan Ratio for the quarter that ended in Mar. 2024 was -22.84%.
As of Mar. 2024, CommScope Holding Co has a Sloan Ratio of -22.84%, indicating there is a warning stage of accrual build up.
CommScope Holding Co Sloan Ratio % Historical Data
The historical data trend for CommScope Holding 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 CommScope Holding Co's Sloan Ratio %
For the Communication Equipment subindustry, CommScope Holding 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.
CommScope Holding Co's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, CommScope Holding Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CommScope Holding Co's Sloan Ratio % falls into.
CommScope Holding 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.
CommScope Holding Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
CommScope Holding Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -100.4 (Jun. 2023 ) + -828.7 (Sep. 2023 ) + -525.2 (Dec. 2023 ) + -359.2 (Mar. 2024 ) = $-1,814 Mil.
CommScope Holding Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 136.8 (Jun. 2023 ) + 138.8 (Sep. 2023 ) + 60.4 (Dec. 2023 ) + -177.7 (Mar. 2024 ) = $158 Mil.
CommScope Holding Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -9 (Jun. 2023 ) + -8.6 (Sep. 2023 ) + 20 (Dec. 2023 ) + 2.6 (Mar. 2024 ) = $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.
CommScope Holding Co (NAS:COMM) 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, CommScope Holding Co has a Sloan Ratio of -22.84%, indicating there is a warning stage of accrual build up.
CommScope Holding Co Sloan Ratio % Related Terms
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CommScope Holding Co (CommScope Holding Co) Business Description
CommScope Holding Co Inc is a provider of infrastructure solutions for communication, data center and entertainment networks. The company provides solutions for wired and wireless networks to enable service providers, including cable, telephone, data center and digital broadcast satellite operators and media programmers, to deliver media, voice, Internet Protocol (IP) data services and Wi-Fi to their subscribers and allow enterprises to experience constant wireless and wired connectivity across complex and varied networking environments. The company is into digital video and IP television (IPTV) distribution systems, broadband access infrastructure platforms and equipment that delivers data and voice networks to homes.
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