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.
Franklin Covey Co's Sloan Ratio for the quarter that ended in Feb. 2024 was -11.95%.
As of Feb. 2024, Franklin Covey Co has a Sloan Ratio of -11.95%, indicating there is a warning stage of accrual build up.
Franklin Covey Co Sloan Ratio % Historical Data
The historical data trend for Franklin Covey 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.
Competitive Comparison of Franklin Covey Co's Sloan Ratio %
For the Education & Training Services subindustry, Franklin Covey 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.
Franklin Covey Co's Sloan Ratio % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Franklin Covey Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Franklin Covey Co's Sloan Ratio % falls into.
Franklin Covey Co 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.
Franklin Covey Co's Sloan Ratio for the fiscal year that ended in Aug. 2023 is calculated as
Franklin Covey Co's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 4.563 (May. 2023 ) + 6.812 (Aug. 2023 ) + 4.851 (Nov. 2023 ) + 0.874 (Feb. 2024 ) = $17.1 Mil.
Franklin Covey Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 14.739 (May. 2023 ) + 9.791 (Aug. 2023 ) + 17.438 (Nov. 2023 ) + 12.774 (Feb. 2024 ) = $54.7 Mil.
Franklin Covey Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -2.465 (May. 2023 ) + -3.164 (Aug. 2023 ) + -3.74 (Nov. 2023 ) + -1.746 (Feb. 2024 ) = $-11.1 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.
Franklin Covey Co (NYSE:FC) 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 Feb. 2024, Franklin Covey Co has a Sloan Ratio of -11.95%, indicating there is a warning stage of accrual build up.
Franklin Covey Co Sloan Ratio % Related Terms
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Franklin Covey Co (Franklin Covey Co) Business Description
Franklin Covey Co is a global company focused on organizational performance improvement. It focuses on providing time management and effectiveness training for individuals and corporations via online training as well as in-person workshops and events. The company provides training and consulting services in the areas of leadership, execution, productivity, trust, sales performance, customer loyalty, and educational improvement. It operates in the business segments of Direct Offices, Education practice, and International Licensees. The company derives revenue from providing training and consulting services, and through the selling of books, audio media, and other related products. It has a business presence in the United States and other international countries.
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