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.
SITO Mobile's Sloan Ratio for the quarter that ended in Sep. 2019 was -455.59%.
As of Sep. 2019, SITO Mobile has a Sloan Ratio of -455.59%, indicating there is a warning stage of accrual build up.
SITO Mobile (OTCPK:STTO) 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. 2019, SITO Mobile has a Sloan Ratio of -455.59%, indicating there is a warning stage of accrual build up.
SITO Mobile Sloan Ratio % Related Terms
SITO Mobile Sloan Ratio % Historical Data
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The historical data trend for SITO Mobile'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.
STTO vs MTSL, IQST, WINMQ: Sloan Ratio % Comparison
For the Telecom Services subindustry, SITO Mobile'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.
SITO Mobile Sloan Ratio % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, SITO Mobile's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SITO Mobile's Sloan Ratio % falls into.
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.
SITO Mobile's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
SITO Mobile's Net Income for the trailing twelve months (TTM) ended in Sep. 2019 was -1.088 (Dec. 2018 ) + -5.049 (Mar. 2019 ) + -3.402 (Jun. 2019 ) + -21.821 (Sep. 2019 ) = $-31.36 Mil.
SITO Mobile's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2019 was -1.053 (Dec. 2018 ) + -0.119 (Mar. 2019 ) + -1.963 (Jun. 2019 ) + -1.48 (Sep. 2019 ) = $-4.62 Mil.
SITO Mobile's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2019 was -0.083 (Dec. 2018 ) + -0.718 (Mar. 2019 ) + -0.707 (Jun. 2019 ) + -0.02 (Sep. 2019 ) = $-1.53 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.
SITO Mobile (STTO) has a Sloan Ratio % of -455.59% as of Sep. 2019. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on SITO Mobile and its competitors.
Is SITO Mobile's Sloan Ratio % too high?
SITO Mobile's current Sloan Ratio % is -455.59%. Overall, SITO Mobile has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does SITO Mobile's Sloan Ratio % compare to MTSL and IQST?
SITO Mobile's Sloan Ratio % of -455.59% can be compared against companies in the Telecommunication Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Telecommunication Services company?
A good Sloan Ratio % depends on the Telecommunication Services industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on SITO Mobile and its competitors. SITO Mobile's current Sloan Ratio % is -455.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SITO Mobile stock overvalued right now?
SITO Mobile (STTO) has a current Sloan Ratio % of -455.59%. The current Sloan Ratio % is -455.59%. SITO Mobile's overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For SITO Mobile (STTO), the current Sloan Ratio % is -455.59% as of Sep. 2019. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
SITO Mobile Ltd operates a mobile location-based advertising platform serving businesses, advertisers, and brands. Business activity of the group is operated SITO Location Based Advertising and SITO Mobile Messaging source. SITO Location Based Advertising displays advertisements and videos on behalf of advertisers including various features, such as geo-fencing, verified walk-in, behavioral targeting, and analytics and optimization; and SITO Mobile Messaging is a platform for building and controlling tailored programs including messaging and customer incentive programs. Its platform and tools are designed to enable large brands or anyone with substantial reach to utilize the mobile device as a new means to communicate.
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