GURUFOCUS.COM » STOCK LIST » Technology » Software » Gartner Inc (NYSE:IT) » Definitions » Sloan Ratio %

Gartner (Gartner) Sloan Ratio % : -3.56% (As of Mar. 2024)


View and export this data going back to 1993. Start your Free Trial

What is Gartner 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.

Gartner's Sloan Ratio for the quarter that ended in Mar. 2024 was -3.56%.

As of Mar. 2024, Gartner has a Sloan Ratio of -3.56%, indicating the company is in the safe zone and there is no funny business with accruals.


Gartner Sloan Ratio % Historical Data

The historical data trend for Gartner'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.

* Premium members only.

Gartner Sloan Ratio % Chart

Gartner Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.39 -7.55 -5.91 -2.41 -4.18

Gartner Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.77 -3.05 -3.29 -4.18 -3.56

Competitive Comparison of Gartner's Sloan Ratio %

For the Information Technology Services subindustry, Gartner'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.


Gartner's Sloan Ratio % Distribution in the Software Industry

For the Software industry and Technology sector, Gartner's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Gartner's Sloan Ratio % falls into.



Gartner 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.

Gartner's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(882.466-1155.737
-54.157)/7835.919
=-4.18%

Gartner's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2024 )
=(797.228-1179.894
--108.114)/7709.81
=-3.56%

Gartner's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 198.043 (Jun. 2023 ) + 180.009 (Sep. 2023 ) + 208.631 (Dec. 2023 ) + 210.545 (Mar. 2024 ) = $797 Mil.
Gartner's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 435.782 (Jun. 2023 ) + 330.946 (Sep. 2023 ) + 224.33 (Dec. 2023 ) + 188.836 (Mar. 2024 ) = $1,180 Mil.
Gartner's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -28.248 (Jun. 2023 ) + -32.251 (Sep. 2023 ) + -22.955 (Dec. 2023 ) + -24.66 (Mar. 2024 ) = $-108 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.


Gartner  (NYSE:IT) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2024, Gartner has a Sloan Ratio of -3.56%, indicating the company is in the safe zone and there is no funny business with accruals.


Gartner Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of Gartner's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


Gartner (Gartner) Business Description

Traded in Other Exchanges
Address
56 Top Gallant Road, P.O. Box 10212, Stamford, CT, USA, 06902-7700
Based in Stamford, Conn., Gartner provides independent research and analysis on information technology and other related technology industries. Its research is delivered to clients' desktops in the form of reports, briefings, and updates. Typical clients are chief information officers and other business executives who help plan companies' IT budgets. Gartner also provides consulting services and hosted nearly 80 IT conferences across the globe in 2007.
Executives
Claire Herkes officer: EVP, Conferences 56 TOP GALLANT ROAD, STAMFORD CT 06902
Robin B Kranich officer: SVP,Research Ops & Bus Dvlpmt 56 TOP GALLANT RD, STAMFORD CT 06902
Craig Safian officer: EVP & CFO 56 TOP GALLANT ROAD, STAMFORD CT 06904
Valentin Sribar officer: SVP, Research & Advisory 56 TOP GALLANT ROAD, STAMFORD CT 06902
Alwyn Dawkins officer: EVP, Conferences 56 TOP GALLANT ROAD, STAMFORD CT 06902
Akhil Jain officer: SVP, Consulting 56 TOP GALLANT ROAD, STAMFORD CT 06902
Richard J Bressler director 1515 BROADWAY, NEW YORK NY 10036
James C Smith director C/O FIRST HEALTH GROUP CORP, 3200 HIGHLAND AVENUE, DOWNERS GROVE IL 60515
Wartinbee William James Iii officer: SVP, Global Sales Strat & Ops 56 TOP GALLANT ROAD, STAMFORD CT 06902
Anne Sutherland Fuchs director
Joseph P. Beck officer: EVP, Global Technology Sales 56 TOP GALLANT RD., STAMFORD CT 06902
Eugene A Hall director, officer: CEO ONE ADP BLVD, ROSELAND NJ 07068
Altaf Rupani officer: EVP, Chief Information Officer 56 TOP GALLANT RD, STAMFORD CT 06902
Michael Fox Diliberto officer: SVP, Chief Information Officer 56 TOP GALLANT RD, STAMFORD CT 06904
Scott Hensel officer: EVP Consulting C/O GARTNER, INC., 56 TOP GALLANT RD., STAMFORD CT 06902

Gartner (Gartner) Headlines

From GuruFocus

Q2 2021 Gartner Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q4 2022 Gartner Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2021 Gartner Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2020 Gartner Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q3 2021 Gartner Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024

Q1 2022 Gartner Inc Earnings Call Transcript

By GuruFocus Research 01-23-2024