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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.
Capella Education Co's Sloan Ratio for the quarter that ended in Jun. 2018 was -2.33%.
As of Jun. 2018, Capella Education Co has a Sloan Ratio of -2.33%, indicating the company is in the safe zone and there is no funny business with accruals.
The historical data trend for Capella Education Co'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.
Capella Education Co Annual Data | |||||||||||||||||||||
Trend | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 | Dec13 | Dec14 | Dec15 | Dec16 | Dec17 | |||||||||||
Sloan Ratio % | Get a 7-Day Free Trial | -0.35 | 13.39 | 1.21 | -0.33 | -4.37 |
Capella Education Co Quarterly Data | ||||||||||||||||||||
Sep13 | Dec13 | Mar14 | Jun14 | Sep14 | Dec14 | Mar15 | Jun15 | Sep15 | Dec15 | Mar16 | Jun16 | Sep16 | Dec16 | Mar17 | Jun17 | Sep17 | Dec17 | Mar18 | Jun18 | |
Sloan Ratio % | Get a 7-Day Free Trial | -11.69 | 1.83 | -4.37 | -5.67 | -2.33 |
For the Education & Training Services subindustry, Capella Education Co'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.
For the Education industry and Consumer Defensive sector, Capella Education Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Capella Education Co's Sloan Ratio % falls into.
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.
Capella Education Co's Sloan Ratio for the fiscal year that ended in Dec. 2017 is calculated as
Sloan Ratio | = | (Net Income (A: Dec. 2017 ) | - | Cash Flow from Operations (A: Dec. 2017 ) |
- | Cash Flow from Investing (A: Dec. 2017 )) | / | Total Assets (A: Dec. 2017 ) | |
= | (23.505 | - | 63.8 | |
- | -28.101) | / | 279.021 | |
= | -4.37% |
Capella Education Co's Sloan Ratio for the quarter that ended in Jun. 2018 is calculated as
Sloan Ratio | = | (Net Income (TTM) | - | Cash Flow from Operations (TTM)) |
- | Cash Flow from Investing (TTM)) | / | Total Assets (Q: Jun. 2018 ) | |
= | (27.121 | - | 66.916 | |
- | -33.119) | / | 286.765 | |
= | -2.33% |
Capella Education Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2018 was 8.754 (Sep. 2017 ) + -7.27 (Dec. 2017 ) + 13.847 (Mar. 2018 ) + 11.79 (Jun. 2018 ) = $27.1 Mil. Capella Education Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2018 was 20.18 (Sep. 2017 ) + 7.37 (Dec. 2017 ) + 21.29 (Mar. 2018 ) + 18.076 (Jun. 2018 ) = $66.9 Mil. Capella Education Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2018 was -19.602 (Sep. 2017 ) + -5.811 (Dec. 2017 ) + -4.383 (Mar. 2018 ) + -3.323 (Jun. 2018 ) = $-33.1 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.
Capella Education Co (NAS:CPLA) 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 Jun. 2018, Capella Education Co has a Sloan Ratio of -2.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Thank you for viewing the detailed overview of Capella Education Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Jody Miller | director | 225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402 |
Peter M Ramstad | officer: SVP & Chief HR Officer | 225 SOUTH 6TH ST, 9TH FLOOR, MINNEAPOLIS MN 55402 |
Andrew E Watt | officer: Senior Vice President | 225 SOUTH SIXTH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402 |
Michael Linton | director | C/O LOANDEPOT, INC. ATTN GENERAL COUNSEL, 26642 TOWNE CENTRE DRIVE, FOOTHILL RANCH CA 92610 |
H James Dallas | director | 127 PUBLIC SQUARE, CLEVELAND OH 44114 |
J Kevin Gilligan | director, officer: Chairman & CEO | P O BOX 1441, MINNEAPOLIS MN 55440-1441 |
Rita D Brogley | director | 225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402 |
Steve Polacek | officer: SVP & CFO | 4106 SUNNYSIDE ROAD, EDINA MN 55424 |
Matthew Wagner Ferguson | director | C/O ECHO GLOBAL LOGISTICS, INC. 600 W CHICAGO AVE, SUITE 725 CHICAGO IL 60654 |
Stephen G Shank | director | C/O CAPELLA EDUCATION CO, 222 S 9TH ST, MINNEAPOLIS MN 55402 |
Andrew M Slavitt | director | 225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402 |
Mark N Greene | director | 901 MARQUETTE AVENUE, SUITE 3200, MINNEAPOLIS MN 55402 |
Sandra E Taylor | director | 265 TURNER DRIVE, DURANGO CO 81303 |
Amy L Ronneberg | officer: Vice President & Controller | 225 SOUTH 6TH STREET, 9TH FLOOR, MINNEAPOLIS MN 55402 |
Lois M Martin | officer: Sr VP & CFO | PO BOX 1101, ADC TELCOMMUNICATIONS INC, MINNEAPOLIS MN 55440-1104 |
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