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.
Optex Systems Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was 13.38%.
As of Mar. 2024, Optex Systems Holdings has a Sloan Ratio of 13.38%, indicating there is a warning stage of accrual build up.
Optex Systems Holdings 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 Optex Systems Holdings's Sloan Ratio %
For the Aerospace & Defense subindustry, Optex Systems Holdings'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.
Optex Systems Holdings's Sloan Ratio % Distribution in the Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Optex Systems Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Optex Systems Holdings's Sloan Ratio % falls into.
Optex Systems Holdings 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.
Optex Systems Holdings's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Optex Systems Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 0.576 (Jun. 2023 ) + 1.431 (Sep. 2023 ) + 0.431 (Dec. 2023 ) + 1.062 (Mar. 2024 ) = $3.50 Mil.
Optex Systems Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -0.34 (Jun. 2023 ) + 1.105 (Sep. 2023 ) + 2.254 (Dec. 2023 ) + -1.276 (Mar. 2024 ) = $1.74 Mil.
Optex Systems Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.222 (Jun. 2023 ) + -0.008 (Sep. 2023 ) + -0.058 (Dec. 2023 ) + -1.139 (Mar. 2024 ) = $-1.43 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.
Optex Systems Holdings (NAS:OPXS) 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, Optex Systems Holdings has a Sloan Ratio of 13.38%, indicating there is a warning stage of accrual build up.
Optex Systems Holdings Sloan Ratio % Related Terms
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Optex Systems Holdings (Optex Systems Holdings) Business Description
Optex Systems Holdings Inc manufactures optical sighting systems and assemblies for the U.S. Department of Defense, foreign military applications, and commercial markets. Its products are installed on a variety of United States military land vehicles, such as the Abrams and Bradley fighting vehicles, and light armored and security vehicles, and have been selected for installation on the Stryker family of vehicles. The company's operating segment includes Optex Richardson and Applied Optics Center Dallas. It generates maximum revenue from the Applied Optics Center Dallas segment. Some of its products include M17 Day/Thermal Periscope; DDAN / M36 Sights; Laser Protected Periscopes; Muzzle Reference Sensor and others.
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