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.
Signify NV's Sloan Ratio for the quarter that ended in Mar. 2024 was -4.79%.
As of Mar. 2024, Signify NV has a Sloan Ratio of -4.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Signify NV Sloan Ratio % Historical Data
The historical data trend for Signify NV'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 Signify NV's Sloan Ratio %
For the Electrical Equipment & Parts subindustry, Signify NV'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.
Signify NV's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Signify NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Signify NV's Sloan Ratio % falls into.
Signify NV 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.
Signify NV's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Signify NV's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 41 (Jun. 2023 ) + 81 (Sep. 2023 ) + 56 (Dec. 2023 ) + 44 (Mar. 2024 ) = €222 Mil.
Signify NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 109 (Jun. 2023 ) + 183 (Sep. 2023 ) + 322 (Dec. 2023 ) + 103 (Mar. 2024 ) = €717 Mil.
Signify NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -25 (Jun. 2023 ) + -33 (Sep. 2023 ) + -26 (Dec. 2023 ) + -17 (Mar. 2024 ) = €-101 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.
Signify NV (XAMS:LIGHT) 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, Signify NV has a Sloan Ratio of -4.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Signify NV Sloan Ratio % Related Terms
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Signify NV is a Netherlands-based firm that provides lighting solutions. The company's product portfolio includes luminaires, lamps, light-emitting diode (LED) lamps, LED tubes, and decorative lighting. Its product application is very broad-based as it is used in almost every industry. The operating segments are Digital Solutions, Digital Products, and Conventional Products. The firm generates of its revenues from its Digital Solutions segment and operates mainly in Europe, the Americas, as well as other international markets.
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