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.
Franklin Wireless's Sloan Ratio for the quarter that ended in Mar. 2024 was 13.31%.
As of Mar. 2024, Franklin Wireless has a Sloan Ratio of 13.31%, indicating there is a warning stage of accrual build up.
Franklin Wireless Sloan Ratio % Historical Data
The historical data trend for Franklin Wireless'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 Franklin Wireless's Sloan Ratio %
For the Communication Equipment subindustry, Franklin Wireless'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.
Franklin Wireless's Sloan Ratio % Distribution in the Hardware Industry
For the Hardware industry and Technology sector, Franklin Wireless's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Franklin Wireless's Sloan Ratio % falls into.
Franklin Wireless 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.
Franklin Wireless's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
Franklin Wireless's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -1.605 (Jun. 2023 ) + -0.258 (Sep. 2023 ) + -0.765 (Dec. 2023 ) + -1.176 (Mar. 2024 ) = $-3.80 Mil.
Franklin Wireless's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 5.072 (Jun. 2023 ) + -5.223 (Sep. 2023 ) + -0.97 (Dec. 2023 ) + -0.779 (Mar. 2024 ) = $-1.90 Mil.
Franklin Wireless's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -10.377 (Jun. 2023 ) + -0.099 (Sep. 2023 ) + -0.771 (Dec. 2023 ) + 2.685 (Mar. 2024 ) = $-8.56 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.
Franklin Wireless (NAS:FKWL) 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, Franklin Wireless has a Sloan Ratio of 13.31%, indicating there is a warning stage of accrual build up.
Franklin Wireless Sloan Ratio % Related Terms
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Franklin Wireless (Franklin Wireless) Business Description
Franklin Wireless Corp is a provider of wireless solutions, including mobile hotspots, routers, and modems, as well as hardware and software products that support machine-to-machine (M2M) applications and the Internet of Things (IoT). Its M2M and IoT solutions include embedded modules, modems, and gateways built to deliver reliable always-on connectivity supporting a spectrum of applications. These products are designed to solve wireless connectivity challenges in a range of vertical markets, including video surveillance, digital signage, home security, oil and gas exploration, kiosks, fleet management, smart grid, vehicle diagnostics, and telematics.
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