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.
Sopra Steria Group's Sloan Ratio for the quarter that ended in Jun. 2024 was 5.93%.
As of Jun. 2024, Sopra Steria Group has a Sloan Ratio of 5.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Sopra Steria Group Sloan Ratio % Historical Data
The historical data trend for Sopra Steria 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 Sopra Steria Group's Sloan Ratio %
For the Information Technology Services subindustry, Sopra Steria 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.
Sopra Steria Group's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Sopra Steria Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sopra Steria Group's Sloan Ratio % falls into.
Sopra Steria 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.
Sopra Steria Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Sopra Steria Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 71.2 (Dec. 2023 ) + 123.2 (Jun. 2024 ) = €194 Mil.
Sopra Steria Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 393.1 (Dec. 2023 ) + 156.3 (Jun. 2024 ) = €549 Mil.
Sopra Steria Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -670.1 (Dec. 2023 ) + -52.3 (Jun. 2024 ) = €-722 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.
Sopra Steria Group (LTS:0NJQ) 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 Jun. 2024, Sopra Steria Group has a Sloan Ratio of 5.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Sopra Steria Group Sloan Ratio % Related Terms
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Sopra Steria Group SA is a digital transformation company. It guides businesses through conversion projects, from the development phase to implementation phase. The firm provides end to end services in the fields of consulting, systems integration, software development, infrastructure management and business process services. It's target markets are financial services, insurance and social welfare, public sector, telecom operators, aerospace and defense, retail and energy sectors. Its geographic segments are France, United Kingdom, Other European countries, and Other countries. The company derives the majority of its revenues from France.
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