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.
USU Software AG's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.93%.
As of Dec. 2023, USU Software AG has a Sloan Ratio of -0.93%, indicating the company is in the safe zone and there is no funny business with accruals.
USU Software AG Sloan Ratio % Historical Data
The historical data trend for USU Software AG'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 USU Software AG's Sloan Ratio %
For the Information Technology Services subindustry, USU Software AG'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.
USU Software AG's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, USU Software AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where USU Software AG's Sloan Ratio % falls into.
USU Software AG 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.
USU Software AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
USU Software AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1.732 (Mar. 2023 ) + 0.713 (Jun. 2023 ) + 0.858 (Sep. 2023 ) + 1.978 (Dec. 2023 ) = €5.3 Mil.
USU Software AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3.925 (Mar. 2023 ) + -3.51 (Jun. 2023 ) + 2.828 (Sep. 2023 ) + 4.641 (Dec. 2023 ) = €7.9 Mil.
USU Software AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.732 (Mar. 2023 ) + -0.22 (Jun. 2023 ) + -0.226 (Sep. 2023 ) + -0.416 (Dec. 2023 ) = €-1.6 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.
USU Software AG (XTER:OSP2) 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 Dec. 2023, USU Software AG has a Sloan Ratio of -0.93%, indicating the company is in the safe zone and there is no funny business with accruals.
USU Software AG Sloan Ratio % Related Terms
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USU Software AG along with its subsidiaries provides IT and knowledge management software. The company organizes its operations into two main segments: Product Business and Service Business. The Product Business segment includes infrastructure management, service/change management, finance management, process management, and knowledge management. The Service Business segment encompasses consulting services for IT projects and individual application development. It derives the majority of its revenue from the Product Business segment. Its customers are based in Germany and operate in the fields of financial services, telecommunications, the automotive industry, consumer goods, services, and trade, as well as the public sector.
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