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.
Agilent Technologies's Sloan Ratio for the quarter that ended in Jan. 2024 was -3.87%.
As of Jan. 2024, Agilent Technologies has a Sloan Ratio of -3.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Agilent Technologies Sloan Ratio % Historical Data
The historical data trend for Agilent Technologies'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 Agilent Technologies's Sloan Ratio %
For the Diagnostics & Research subindustry, Agilent Technologies'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.
Agilent Technologies's Sloan Ratio % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Agilent Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Agilent Technologies's Sloan Ratio % falls into.
Agilent Technologies 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.
Agilent Technologies's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as
Agilent Technologies's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 302 (Apr. 2023 ) + 111 (Jul. 2023 ) + 475 (Oct. 2023 ) + 348 (Jan. 2024 ) = $1,236 Mil.
Agilent Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 398 (Apr. 2023 ) + 562 (Jul. 2023 ) + 516 (Oct. 2023 ) + 485 (Jan. 2024 ) = $1,961 Mil.
Agilent Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -77 (Apr. 2023 ) + -89 (Jul. 2023 ) + -40 (Oct. 2023 ) + -95 (Jan. 2024 ) = $-301 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.
Agilent Technologies (NYSE:A) 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 Jan. 2024, Agilent Technologies has a Sloan Ratio of -3.87%, indicating the company is in the safe zone and there is no funny business with accruals.
Agilent Technologies Sloan Ratio % Related Terms
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Agilent Technologies (Agilent Technologies) Business Description
Originally spun out of Hewlett-Packard in 1999, Agilent has evolved into a leading life sciences and diagnostics firm. Today, Agilent's measurement technologies serve a broad base of customers with its three operating segments: life science and applied tools, cross lab (consisting of consumables and services related to life science and applied tools), and diagnostics and genomics. Over half of its sales are generated from the biopharmaceutical, chemical, and advanced materials end markets, but it also supports clinical lab, environmental, forensics, food, academic, and government-related organizations. The company is geographically diverse, with operations in the U.S. and China representing the largest country concentrations.
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