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.
As of Aug. 2022, Smart Employee Benefits has a Sloan Ratio of 8.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Smart Employee Benefits Sloan Ratio % Historical Data
* 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 Smart Employee Benefits's Sloan Ratio %
For the Information Technology Services subindustry, Smart Employee Benefits'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.
Smart Employee Benefits's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Smart Employee Benefits's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Smart Employee Benefits's Sloan Ratio % falls into.
Smart Employee Benefits 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.
Smart Employee Benefits's Sloan Ratio for the fiscal year that ended in Nov. 2021 is calculated as
Smart Employee Benefits's Net Income for the trailing twelve months (TTM) ended in Aug. 2022 was -1.648 (Nov. 2021 ) + -1.451 (Feb. 2022 ) + -1.853 (May. 2022 ) + -1.754 (Aug. 2022 ) = $-6.71 Mil.
Smart Employee Benefits's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2022 was 0.524 (Nov. 2021 ) + -3.599 (Feb. 2022 ) + -3.758 (May. 2022 ) + -3.45 (Aug. 2022 ) = $-10.28 Mil.
Smart Employee Benefits's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2022 was -0.023 (Nov. 2021 ) + -0.036 (Feb. 2022 ) + 0.996 (May. 2022 ) + -0.009 (Aug. 2022 ) = $0.93 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.
Smart Employee Benefits (OTCPK:SEBFF) 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 Aug. 2022, Smart Employee Benefits has a Sloan Ratio of 8.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Smart Employee Benefits Sloan Ratio % Related Terms
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Smart Employee Benefits (Smart Employee Benefits) Business Description
Smart Employee Benefits Inc is a Canadian technology company providing software-enabled services in the areas of healthcare transaction processing, software solutions, and professional services for corporate and government clients. The company's business segments are Benefits and Technology. Its Benefits segment provides software, solutions, services, and products focused on managing group benefit and wellness solutions and healthcare claims processing environments for corporate and government clients. The Technology segment provides solutions in the areas of supply change management, integration, and energy, as well as training and resource provisioning. It earns most of its revenue from the Technology segment.
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