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.
When sloan ratio (148.48)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Site Group International has a Sloan Ratio of -8.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Site Group International 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 Site Group International's Sloan Ratio %
For the Education & Training Services subindustry, Site Group International'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.
Site Group International's Sloan Ratio % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Site Group International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Site Group International's Sloan Ratio % falls into.
Site Group International 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.
Site Group International's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Site Group International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -1.688 (Jun. 2023 ) + -0.815 (Dec. 2023 ) = A$-2.50 Mil.
Site Group International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -1.471 (Jun. 2023 ) + 0.296 (Dec. 2023 ) = A$-1.18 Mil.
Site Group International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.412 (Jun. 2023 ) + 0.209 (Dec. 2023 ) = A$-0.20 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.
Site Group International (ASX:SIT) 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, Site Group International has a Sloan Ratio of -8.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Site Group International Sloan Ratio % Related Terms
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Site Group International (ASX:SIT) Business Description
Site Group International Ltd is engaged in education services in Australia and internationally. It delivers workforce solutions across a variety of industries to both retail and corporate clients. Its segments include Site Skills Training - International, which operates a facility at Clark Freeport Zone in the Philippines, Energy Services, which refers to the establishment of specialised energy training and services, and Tertiary Education, which delivers Diploma and certificate level courses at Site's campuses in Australia. It provides vocational training and assessment services for candidates in the mining and processing, oil and gas, construction, camp services, hospitality, and logistics sectors. The majority of revenue is derived from Site Skills Training.
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