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.
Randstad NV's Sloan Ratio for the quarter that ended in Sep. 2024 was -1.60%.
As of Sep. 2024, Randstad NV has a Sloan Ratio of -1.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Randstad NV Sloan Ratio % Historical Data
The historical data trend for Randstad NV'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 Randstad NV's Sloan Ratio %
For the Staffing & Employment Services subindustry, Randstad NV'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.
Randstad NV's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Randstad NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Randstad NV's Sloan Ratio % falls into.
Randstad NV 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.
Randstad NV's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Randstad NV's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 177.754 (Dec. 2023 ) + 95.652 (Mar. 2024 ) + 83.961 (Jun. 2024 ) + 117.647 (Sep. 2024 ) = $475 Mil.
Randstad NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 399.128 (Dec. 2023 ) + 33.696 (Mar. 2024 ) + 108.719 (Jun. 2024 ) + 392.897 (Sep. 2024 ) = $934 Mil.
Randstad NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -68.702 (Dec. 2023 ) + -18.478 (Mar. 2024 ) + -99.031 (Jun. 2024 ) + -78.801 (Sep. 2024 ) = $-265 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.
Randstad NV (OTCPK:RANJY) 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 Sep. 2024, Randstad NV has a Sloan Ratio of -1.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Randstad NV Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Randstad NV's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Randstad NV is engaged in the HR services industry. The company is the largest HR services provider and is driven to become the most valued working life partner, supporting as many people as possible in realizing their true potential throughout their working lives. It services comprises of temporary and permanent placements of talent. In addition, we offer recruitment process outsourcing services (RPO), managed services programs (MSP), payroll services, outplacement services, and job posting. The company provides companies with high-quality, diverse, and agile workforces as per need while helping people get rewarding jobs and stay relevant in the ever-changing world of work.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
RANJY has been successfully added to your 