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.
Bechtle AG's Sloan Ratio for the quarter that ended in Sep. 2024 was -1.90%.
As of Sep. 2024, Bechtle AG has a Sloan Ratio of -1.90%, indicating the company is in the safe zone and there is no funny business with accruals.
Bechtle AG Sloan Ratio % Historical Data
The historical data trend for Bechtle AG'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 Bechtle AG's Sloan Ratio %
For the Information Technology Services subindustry, Bechtle AG'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.
Bechtle AG's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Bechtle AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bechtle AG's Sloan Ratio % falls into.
Bechtle AG 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.
Bechtle AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Bechtle AG's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 82.761 (Dec. 2023 ) + 63.59 (Mar. 2024 ) + 64.256 (Jun. 2024 ) + 62.267 (Sep. 2024 ) = $273 Mil.
Bechtle AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 293.123 (Dec. 2023 ) + 49.272 (Mar. 2024 ) + 103.167 (Jun. 2024 ) + 164.558 (Sep. 2024 ) = $610 Mil.
Bechtle AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -200.731 (Dec. 2023 ) + -81.112 (Mar. 2024 ) + 26.774 (Jun. 2024 ) + -1.599 (Sep. 2024 ) = $-257 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.
Bechtle AG (OTCPK:BECTY) 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. 2024, Bechtle AG has a Sloan Ratio of -1.90%, indicating the company is in the safe zone and there is no funny business with accruals.
Bechtle AG Sloan Ratio % Related Terms
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Bechtle AG is an information technology provider with operations in Germany, Austria, Switzerland, and other European countries. The company's customers are mainly in the industrial, trade, financial, and public sectors. Bechtle operates through two segments: IT System House and Managed Services, and IT E-commerce. The IT System House and Managed Services segment consist of IT strategy consulting, hardware and software sales, project planning and roll-out, system integrations, IT services and training, and client management, among others. The IT E-commerce segment includes e-procurement services, software solutions, and product marketing through the Internet and telemarketing.
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