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.
Made Tech Group's Sloan Ratio for the quarter that ended in Nov. 2023 was -3.14%.
As of Nov. 2023, Made Tech Group has a Sloan Ratio of -3.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Made Tech Group Sloan Ratio % Historical Data
The historical data trend for Made Tech Group'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 Made Tech Group's Sloan Ratio %
For the Information Technology Services subindustry, Made Tech Group'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.
Made Tech Group's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Made Tech Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Made Tech Group's Sloan Ratio % falls into.
Made Tech Group 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.
Made Tech Group's Sloan Ratio for the fiscal year that ended in May. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Made Tech Group's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was -0.531 (May. 2023 ) + -0.975 (Nov. 2023 ) = £-1.51 Mil.
Made Tech Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was 1.228 (May. 2023 ) + 0.364 (Nov. 2023 ) = £1.59 Mil.
Made Tech Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was -1.613 (May. 2023 ) + -0.857 (Nov. 2023 ) = £-2.47 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.
Made Tech Group (LSE:MTEC) 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 Nov. 2023, Made Tech Group has a Sloan Ratio of -3.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Made Tech Group Sloan Ratio % Related Terms
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Made Tech Group PLC provides digital, data and technology services to the UK public sector, that enables central government, healthcare, and local government organisations to digitally transform. Its projects include delivering and operating the Multichannel Digital Tax Platform (MDTP), which runs HMRC's Making Tax Digital services; supporting the Ministry of Justice to modernise the technology within the prison estate; and working with DVLA to digitally transform key services such as the UK provisional driving licence system.
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