What is The Ultimate Software Group 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.
As of Mar. 2019, The Ultimate Software Group has a Sloan Ratio of 6.43%, indicating the company is in the safe zone and there is no funny business with accruals.
The Ultimate Software Group Sloan Ratio % Historical Data
* 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 The Ultimate Software Group's Sloan Ratio %
For the Software - Infrastructure subindustry, The Ultimate Software Group'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.
The Ultimate Software Group's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, The Ultimate Software Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Ultimate Software Group's Sloan Ratio % falls into.
The Ultimate Software Group 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.
The Ultimate Software Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2019 was 13.68 (Jun. 2018 ) + 17.085 (Sep. 2018 ) + 13.381 (Dec. 2018 ) + 13.176 (Mar. 2019 ) = $57 Mil.
The Ultimate Software Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2019 was 61.502 (Jun. 2018 ) + 54.096 (Sep. 2018 ) + 51.696 (Dec. 2018 ) + 35.235 (Mar. 2019 ) = $203 Mil.
The Ultimate Software Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2019 was 569.345 (Jun. 2018 ) + -40.29 (Sep. 2018 ) + -73.695 (Dec. 2018 ) + -775.211 (Mar. 2019 ) = $-320 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.
The Ultimate Software Group (NAS:ULTI) 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 Mar. 2019, The Ultimate Software Group has a Sloan Ratio of 6.43%, indicating the company is in the safe zone and there is no funny business with accruals.
The Ultimate Software Group Sloan Ratio % Related Terms
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The Ultimate Software Group (The Ultimate Software Group) Business Description
The Ultimate Software Group is a provider of human capital management software solutions. The firm's UltiPro product suite includes human resources, payroll, and benefits management functionality, available in 12 languages and 35 country-specific localizations. Its solutions manage the complete employee lifecycle from recruitment to retirement, and include talent acquisition and onboarding, performance management, salary planning, budgeting, succession management, reporting, and analytical capabilities. The firm generates revenue through cloud subscription fees and implementation consulting services fees. All of the firm's revenue is generated in the United States and Canada.
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