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.
SKYX Platforms's Sloan Ratio for the quarter that ended in Mar. 2024 was -40.09%.
Warning Sign:
When sloan ratio (-39.26)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, SKYX Platforms has a Sloan Ratio of -40.09%, indicating earnings are more likely to be made up of accruals.
SKYX Platforms Sloan Ratio % Historical Data
The historical data trend for SKYX Platforms'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 SKYX Platforms's Sloan Ratio %
For the Electrical Equipment & Parts subindustry, SKYX Platforms'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.
SKYX Platforms's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, SKYX Platforms's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SKYX Platforms's Sloan Ratio % falls into.
SKYX Platforms 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.
SKYX Platforms's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
SKYX Platforms's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -12.268 (Jun. 2023 ) + -7.184 (Sep. 2023 ) + -12.32 (Dec. 2023 ) + -9.676 (Mar. 2024 ) = $-41.45 Mil.
SKYX Platforms's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -2.525 (Jun. 2023 ) + -3.448 (Sep. 2023 ) + -2.906 (Dec. 2023 ) + -6.182 (Mar. 2024 ) = $-15.06 Mil.
SKYX Platforms's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 3.4 (Jun. 2023 ) + -0.12 (Sep. 2023 ) + 0.13 (Dec. 2023 ) + -0.054 (Mar. 2024 ) = $3.36 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.
SKYX Platforms (NAS:SKYX) 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, SKYX Platforms has a Sloan Ratio of -40.09%, indicating earnings are more likely to be made up of accruals.
SKYX Platforms Sloan Ratio % Related Terms
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SKYX Platforms (SKYX Platforms) Business Description
SKYX Platforms Corp operates in the business of developing proprietary technology that enables a quick and safe installation of electrical fixtures, such as light fixtures and ceiling fans. The company's technology consists of a weight bearing, fixable socket and a revolving plug for conducting electric power and supporting an electrical appliance attached to a wall or ceiling. The socket is comprised of a nonconductive body that houses conductive rings connectable to an electric power supply through terminals in its side exterior. The plug is also comprised of a nonconductive body that houses corresponding conductive rings, attaches to the socket via a male post and is capable of feeding electric power to an appliance. The Company generates its income from the United States.
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