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Morgan Stanley (MEX:MS) Sloan Ratio % : 2.49% (As of Mar. 2024)


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What is Morgan Stanley 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.

Morgan Stanley's Sloan Ratio for the quarter that ended in Mar. 2024 was 2.49%.

As of Mar. 2024, Morgan Stanley has a Sloan Ratio of 2.49%, indicating the company is in the safe zone and there is no funny business with accruals.


Morgan Stanley Sloan Ratio % Historical Data

The historical data trend for Morgan Stanley'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.

Morgan Stanley Sloan Ratio % Chart

Morgan Stanley 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 0.20 6.64 2.61 2.46 3.83

Morgan Stanley Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 4.68 3.01 3.90 2.49 -

Competitive Comparison of Morgan Stanley's Sloan Ratio %

For the Capital Markets subindustry, Morgan Stanley'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.


Morgan Stanley's Sloan Ratio % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Morgan Stanley's Sloan Ratio % distribution charts can be found below:

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



Morgan Stanley 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.

Morgan Stanley'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 )
=(154244.991--569248.381
--52348.581)/20262041.006
=3.83%

Morgan Stanley'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 )
=(161729.05--329411.509
--15897.254)/20388549.066
=2.49%

Morgan Stanley's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 37407.99 (Jun. 2023 ) + 41944.704 (Sep. 2023 ) + 25749.934 (Dec. 2023 ) + 56626.422 (Mar. 2024 ) = MXN161,729 Mil.
Morgan Stanley's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -165712.938 (Jun. 2023 ) + 65268.607 (Sep. 2023 ) + -301326.85 (Dec. 2023 ) + 72359.672 (Mar. 2024 ) = MXN-329,412 Mil.
Morgan Stanley's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 106995.08 (Jun. 2023 ) + 9005.57 (Sep. 2023 ) + -149390.357 (Dec. 2023 ) + 17492.453 (Mar. 2024 ) = MXN-15,897 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.


Morgan Stanley  (MEX:MS) 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, Morgan Stanley has a Sloan Ratio of 2.49%, indicating the company is in the safe zone and there is no funny business with accruals.


Morgan Stanley Sloan Ratio % Related Terms

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Morgan Stanley (MEX:MS) Business Description

Address
1585 Broadway, New York, NY, USA, 10036
Morgan Stanley is a global investment bank whose history, through its legacy firms, can be traced back to 1924. The company has institutional securities, wealth management, and investment management segments. The company had over $4 trillion of client assets as well as over 80,000 employees at the end of 2022. Approximately 50% of the company's net revenue is from its institutional securities business, with the remainder coming from wealth and investment management. The company derives about 30% of its total revenue outside the Americas.