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MITFY (MITIE Group) Sloan Ratio % : -3.34% (As of Sep. 2024)


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What is MITIE Group 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.

MITIE Group's Sloan Ratio for the quarter that ended in Sep. 2024 was -3.34%.

As of Sep. 2024, MITIE Group has a Sloan Ratio of -3.34%, indicating the company is in the safe zone and there is no funny business with accruals.


MITIE Group Sloan Ratio % Historical Data

The historical data trend for MITIE 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.

* Premium members only.

MITIE Group Sloan Ratio % Chart

MITIE Group Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.39 3.36 -8.43 1.78 -1.54

MITIE Group Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
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 -2.64 1.60 0.55 -1.58 -3.34

Competitive Comparison of MITIE Group's Sloan Ratio %

For the Specialty Business Services subindustry, MITIE 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.


MITIE Group's Sloan Ratio % Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, MITIE Group's Sloan Ratio % distribution charts can be found below:

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



MITIE 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.

MITIE Group's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (A: Mar. 2024 )-Cash Flow from Operations (A: Mar. 2024 )
-Cash Flow from Investing (A: Mar. 2024 ))/Total Assets (A: Mar. 2024 )
=(160.483-251.207
--52.986)/2449.555
=-1.54%

MITIE Group's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(155.178-258.693
--14.352)/2666.931
=-3.34%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. MITIE Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 105.972 (Mar. 2024 ) + 49.206 (Sep. 2024 ) = $155 Mil.
MITIE Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 175.095 (Mar. 2024 ) + 83.598 (Sep. 2024 ) = $259 Mil.
MITIE Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 4.828 (Mar. 2024 ) + -19.18 (Sep. 2024 ) = $-14 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.


MITIE Group  (OTCPK:MITFY) 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 Sep. 2024, MITIE Group has a Sloan Ratio of -3.34%, indicating the company is in the safe zone and there is no funny business with accruals.


MITIE Group Sloan Ratio % Related Terms

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MITIE Group Business Description

Traded in Other Exchanges
Address
32 London Bridge Street, The Shard, Level 12, Southwark, London, GBR, SE1 9SG
MITIE Group PLC is a U.K.-based company. The company's reportable segments include Technical services, Business services, Central Government & Defence, Communities, and Corporate Centre. The company generates the majority of its revenue from the technical services and business services segments. Geographically, the company generates a majority of its revenue from the United Kingdom.