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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.
Cyxtera Technologies's Sloan Ratio for the quarter that ended in Mar. 2023 was -21.85%.
As of Mar. 2023, Cyxtera Technologies has a Sloan Ratio of -21.85%, indicating there is a warning stage of accrual build up.
Cyxtera Technologies (NAS:CYXTW) 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. 2023, Cyxtera Technologies has a Sloan Ratio of -21.85%, indicating there is a warning stage of accrual build up.
Cyxtera Technologies Sloan Ratio % Related Terms
Cyxtera Technologies Sloan Ratio % Historical Data
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The historical data trend for Cyxtera Technologies'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.
CYXTW vs FCCN, GTCH, SASI: Sloan Ratio % Comparison
For the Information Technology Services subindustry, Cyxtera Technologies'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.
Cyxtera Technologies Sloan Ratio % vs Software Industry
For the Software industry and Technology sector, Cyxtera Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cyxtera Technologies's Sloan Ratio % falls into.
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.
Cyxtera Technologies's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Cyxtera Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was -48.1 (Jun. 2022 ) + -55.9 (Sep. 2022 ) + -210.2 (Dec. 2022 ) + -325.4 (Mar. 2023 ) = $-639.60 Mil.
Cyxtera Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2023 was -0.5 (Jun. 2022 ) + 62.3 (Sep. 2022 ) + 23.4 (Dec. 2022 ) + 13.2 (Mar. 2023 ) = $98.40 Mil.
Cyxtera Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2023 was -29.9 (Jun. 2022 ) + -38.1 (Sep. 2022 ) + -31.4 (Dec. 2022 ) + -33.5 (Mar. 2023 ) = $-132.90 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.
Cyxtera Technologies (CYXTW) has a Sloan Ratio % of -21.85% as of Mar. 2023. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Cyxtera Technologies and its competitors.
Is Cyxtera Technologies' Sloan Ratio % too high?
Cyxtera Technologies' current Sloan Ratio % is -21.85%. Overall, Cyxtera Technologies has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Cyxtera Technologies' Sloan Ratio % compare to FCCN and GTCH?
Cyxtera Technologies' Sloan Ratio % of -21.85% can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Software company?
A good Sloan Ratio % depends on the Software industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Cyxtera Technologies and its competitors. Cyxtera Technologies's current Sloan Ratio % is -21.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cyxtera Technologies stock overvalued right now?
Cyxtera Technologies (CYXTW) has a current Sloan Ratio % of -21.85%. The current Sloan Ratio % is -21.85%. Cyxtera Technologies' overall GF Score™ is 16/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Cyxtera Technologies (CYXTW), the current Sloan Ratio % is -21.85% as of Mar. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Cyxtera Technologies Inc is engaged in data center colocation and interconnection services. The company operates a footprint of more than 60 data centers around the world, providing services to more than 2,300 leading enterprises and U.S. federal government agencies. Cyxtera brings proven operational excellence, global scale, flexibility and customer-focused innovation together to provide a comprehensive portfolio of data center and interconnection services.
16GF Score
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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