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.
Sage Group (The)'s Sloan Ratio for the quarter that ended in Sep. 2024 was -3.44%.
As of Sep. 2024, Sage Group (The) has a Sloan Ratio of -3.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Sage Group (The) Sloan Ratio % Historical Data
The historical data trend for Sage Group (The)'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 Sage Group (The)'s Sloan Ratio %
For the Software - Application subindustry, Sage Group (The)'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.
Sage Group (The)'s Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Sage Group (The)'s Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sage Group (The)'s Sloan Ratio % falls into.
Sage Group (The) 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.
Sage Group (The)'s Sloan Ratio for the fiscal year that ended in Sep. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Sage Group (The)'s Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 198.221 (Mar. 2024 ) + 220.899 (Sep. 2024 ) = $419 Mil.
Sage Group (The)'s Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 266.836 (Mar. 2024 ) + 371.693 (Sep. 2024 ) = $639 Mil.
Sage Group (The)'s Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -6.353 (Mar. 2024 ) + -47.619 (Sep. 2024 ) = $-54 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.
Sage Group (The) (OTCPK:SGPYY) 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, Sage Group (The) has a Sloan Ratio of -3.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Sage Group (The) Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Sage Group (The)'s Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
The Sage Group is a U.K.-based provider of accounting and enterprise resource planning, or ERP, software, predominantly to customers in the U.S. and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud connected and cloud native products, sold via software-as-a-service, or SaaS, contracts. Sage's main cloud native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.
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