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.
Black Knight's Sloan Ratio for the quarter that ended in Sep. 2023 was 0.00%.
As of Sep. 2023, Black Knight has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Black Knight Sloan Ratio % Historical Data
The historical data trend for Black Knight'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 Black Knight's Sloan Ratio %
For the Software - Application subindustry, Black Knight'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.
Black Knight's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Black Knight's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Black Knight's Sloan Ratio % falls into.
Black Knight 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.
Black Knight's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Black Knight's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 17.6 (Dec. 2022 ) + 141.8 (Mar. 2023 ) + 55.3 (Jun. 2023 ) + -1336.9 (Sep. 2023 ) = $-1,122 Mil.
Black Knight's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 60 (Dec. 2022 ) + 44.5 (Mar. 2023 ) + 0 (Jun. 2023 ) + 27.8 (Sep. 2023 ) = $132 Mil.
Black Knight's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -29.5 (Dec. 2022 ) + 199.2 (Mar. 2023 ) + -24 (Jun. 2023 ) + 313.7 (Sep. 2023 ) = $459 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.
Black Knight (NYSE:BKI) 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 Sep. 2023, Black Knight has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Black Knight Sloan Ratio % Related Terms
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Black Knight Inc is a technology company that, through its subsidiaries, provides software, data, and analytics solutions to the mortgage and consumer loan, real estate, and capital markets industry. The company's product portfolio includes software solutions to support loan origination, processing and servicing, and data and analytics solutions such as automated valuation models, data integration, risk assessment, among others. Black Knight's business is organized in two segments: software solutions and data/analytics. The majority of revenue comes from the company's software solutions segment, and most of the company's revenue is earned in the United States.
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