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RWS Holdings (RWS Holdings) Sloan Ratio % : -4.85% (As of Sep. 2023)


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What is RWS Holdings 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.

RWS Holdings's Sloan Ratio for the quarter that ended in Sep. 2023 was -4.85%.

As of Sep. 2023, RWS Holdings has a Sloan Ratio of -4.85%, indicating the company is in the safe zone and there is no funny business with accruals.


RWS Holdings Sloan Ratio % Historical Data

The historical data trend for RWS Holdings'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.

RWS Holdings Sloan Ratio % Chart

RWS Holdings Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.21 -0.34 -5.02 -1.44 -4.86

RWS Holdings Semi-Annual Data
Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23
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 -5.05 -2.02 -1.54 -1.71 -4.85

Competitive Comparison of RWS Holdings's Sloan Ratio %

For the Specialty Business Services subindustry, RWS Holdings'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.


RWS Holdings's Sloan Ratio % Distribution in the Business Services Industry

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

* The bar in red indicates where RWS Holdings's Sloan Ratio % falls into.



RWS Holdings 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.

RWS Holdings's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as

Sloan Ratio=(Net Income (A: Sep. 2023 )-Cash Flow from Operations (A: Sep. 2023 )
-Cash Flow from Investing (A: Sep. 2023 ))/Total Assets (A: Sep. 2023 )
=(-34.282-133.045
--88.119)/1628.465
=-4.86%

RWS Holdings's Sloan Ratio for the quarter that ended in Sep. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2023 )
=(-34.785-131.598
--87.474)/1628.465
=-4.85%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. RWS Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 25.364 (Mar. 2023 ) + -60.149 (Sep. 2023 ) = $-34.8 Mil.
RWS Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 73.058 (Mar. 2023 ) + 58.54 (Sep. 2023 ) = $131.6 Mil.
RWS Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -32.524 (Mar. 2023 ) + -54.95 (Sep. 2023 ) = $-87.5 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.


RWS Holdings  (OTCPK:RWSPF) 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. 2023, RWS Holdings has a Sloan Ratio of -4.85%, indicating the company is in the safe zone and there is no funny business with accruals.


RWS Holdings Sloan Ratio % Related Terms

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RWS Holdings (RWS Holdings) Business Description

Traded in Other Exchanges
Address
Europa House, Chiltern Park, Chiltern Hill, Chalfont Saint Peter, Buckinghamshire, GBR, SL9 9FG
RWS Holdings PLC is a United Kingdom-based company that provides patent translation, intellectual property, and language support services. The company operates in four reportable segments; Language Services, Regulated Industries, IP Services, and Language, and Content Technology. The majority of revenue is derived from the Language services segment. Geographically, it derives a majority of its revenue from the United States of America, while it also operates in Continental Europe, United States of America and Rest of the world.

RWS Holdings (RWS Holdings) Headlines