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.
Concentrix's Sloan Ratio for the quarter that ended in Aug. 2024 was 14.50%.
As of Aug. 2024, Concentrix has a Sloan Ratio of 14.50%, indicating there is a warning stage of accrual build up.
Concentrix Sloan Ratio % Historical Data
The historical data trend for Concentrix'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 Concentrix's Sloan Ratio %
For the Information Technology Services subindustry, Concentrix'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.
Concentrix's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Concentrix's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Concentrix's Sloan Ratio % falls into.
Concentrix 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.
Concentrix's Sloan Ratio for the fiscal year that ended in Nov. 2023 is calculated as
Concentrix's Net Income for the trailing twelve months (TTM) ended in Aug. 2024 was 69.487 (Nov. 2023 ) + 52.102 (Feb. 2024 ) + 66.834 (May. 2024 ) + 16.631 (Aug. 2024 ) = $205 Mil.
Concentrix's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2024 was 229.264 (Nov. 2023 ) + -46.87 (Feb. 2024 ) + 238.339 (May. 2024 ) + 191.622 (Aug. 2024 ) = $612 Mil.
Concentrix's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2024 was -1993.523 (Nov. 2023 ) + -60.562 (Feb. 2024 ) + -60.087 (May. 2024 ) + -62.746 (Aug. 2024 ) = $-2,177 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.
Concentrix (NAS:CNXC) 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 Aug. 2024, Concentrix has a Sloan Ratio of 14.50%, indicating there is a warning stage of accrual build up.
Concentrix Sloan Ratio % Related Terms
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Concentrix Corp is a technology-enabled company specialized in customer engagement and customer management. The company provides end-to-end capabilities, including CX process optimization, technology innovation and design engineering, front- and back-office automation, analytics and business transformation services to clients in five primary industry verticals. The Company's verticals are technology and consumer electronics, retail, travel and e-commerce, communications and media, banking, financial services and insurance, and healthcare. Geographically, the company operates in Philippines, Unites States, India, Canada, Germany, Great Britain and others.
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