iGate (FRA:MS4) Sloan Ratio % : -0.21% (As of Mar. 2015)

View and export this data going back to . Start your Free Trial

What is iGate Sloan Ratio %?

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.

iGate's Sloan Ratio for the quarter that ended in Mar. 2015 was -0.21%.

As of Mar. 2015, iGate has a Sloan Ratio of -0.21%, indicating the company is in the safe zone and there is no funny business with accruals.

iGate Sloan Ratio % Historical Data

The historical data trend for iGate'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.

* Premium members only.

iGate Sloan Ratio % Chart

iGate Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Sloan Ratio %

Get a 7-Day Free Trial

0.71

68.02

21.42

-14.63

-2.98

iGate Quarterly Data
	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15
Sloan Ratio %	Get a 7-Day Free Trial															-14.51	-6.91	-14.27	-2.63	-0.21

Competitive Comparison of iGate's Sloan Ratio %

For the Information Technology Services subindustry, iGate'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.

iGate's Sloan Ratio % Distribution in the Software Industry

For the Software industry and Technology sector, iGate's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where iGate's Sloan Ratio % falls into.

iGate 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.

iGate's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2014 )	-	Cash Flow from Operations (A: Dec. 2014 )
	-	Cash Flow from Investing (A: Dec. 2014 ))	/	Total Assets (A: Dec. 2014 )
	=	(89.22	-	110.886
	-	12.265)	/	1140.431
	=	-2.98%

iGate's Sloan Ratio for the quarter that ended in Mar. 2015 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Mar. 2015 )
	=	(97.169	-	93.873
	-	6.02)	/	1309.811
	=	-0.21%

iGate's Net Income for the trailing twelve months (TTM) ended in Mar. 2015 was 2.293 (Jun. 2014 ) + 28.951 (Sep. 2014 ) + 30.795 (Dec. 2014 ) + 35.13 (Mar. 2015 ) = €97 Mil.
iGate's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 19.276 (Jun. 2014 ) + 31.956 (Sep. 2014 ) + 42.321 (Dec. 2014 ) + 0.32 (Mar. 2015 ) = €94 Mil.
iGate's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2015 was -7.964 (Jun. 2014 ) + 67.765 (Sep. 2014 ) + -59.815 (Dec. 2014 ) + 6.034 (Mar. 2015 ) = €6 Mil.

iGate (FRA:MS4) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2015, iGate has a Sloan Ratio of -0.21%, indicating the company is in the safe zone and there is no funny business with accruals.

iGate Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of iGate's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.

iGate (FRA:MS4) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » iGate Corp (FRA:MS4) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.igate.com

Igate Corp was founded in 1986. The Company is an outsourcing provider of integrated end-to-end offshore centric information technology (IT) and IT-enabled operations solutions and services. The Company delivers various IT services through international integrated onsite and offshore delivery locations mainly in India. The Company provides its services to customers through industry focused practices, including insurance and healthcare (IHC), manufacturing, retail and logistics (MRDL), banking and financial services (BFS"), communications and utilities (CEU), and media and entertainment (MELT) and through technology focused practices. It offers services to customers through industry focused practices, including insurance and healthcare, life sciences, manufacturing, retail and logistics, banking and financial services, communications, energy and utilities, product and engineering solutions, government solutions and media and entertainment. Its IT and IT-enabled services include application development, application management, verification and validation, enterprise application solutions, business intelligence and data warehousing, infrastructure management services, enterprise mobility, cloud services, embedded systems development, engineering design services, IT consulting, IT governance and customized learning solutions, business process outsourcing ("BPO") and customer interaction services. The Company has operations in India, Canada, the United States, Europe, Mexico, Singapore, Malaysia, Japan, Australia, the United Arab Emirates, South Africa, Turkey, South Korea, China, Switzerland and the United Kingdom. The Company delivers effective solutions to more than 360 Fortune 1000 clients. The Company's main competitors in the IT and IT enabled outsourcing industry include IT outsourcing firms, consulting firms, systems integration-firms and general management consulting firms such as Tata Consultancy Services Limited, Infosys Technologies Limited, Cognizant Technology Solutions Corporation, Wipro Limited, Genpact Limited, WNS (Holdings) Limited, EXLService Holdings Inc., Syntel Inc., Mindtree Limited, and Hexaware Technologies Limited. The Company is subject to numerous, and sometimes conflicting, legal regimes on matters as diverse as anticorruption, import/export controls, content requirements, trade restrictions, tariffs, taxation, sanctions, immigration, internal and disclosure control obligations, securities regulation, anti-competition, data privacy and labor relations.

iGate (FRA:MS4) Headlines

No Headlines