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.
Tingo Group's Sloan Ratio for the quarter that ended in Sep. 2023 was 9.34%.
Warning Sign:
When sloan ratio (-27.35)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Sep. 2023, Tingo Group has a Sloan Ratio of 9.34%, indicating the company is in the safe zone and there is no funny business with accruals.
Tingo Group Sloan Ratio % Historical Data
The historical data trend for Tingo Group'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 Tingo Group's Sloan Ratio %
For the Software - Application subindustry, Tingo Group'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.
Tingo Group's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Tingo Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Tingo Group's Sloan Ratio % falls into.
Tingo Group 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.
Tingo Group's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Tingo Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -16.375 (Dec. 2022 ) + 176.74 (Mar. 2023 ) + 96.508 (Jun. 2023 ) + 20.745 (Sep. 2023 ) = $278 Mil.
Tingo Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 67.185 (Dec. 2022 ) + 242.793 (Mar. 2023 ) + -173.899 (Jun. 2023 ) + 245.884 (Sep. 2023 ) = $382 Mil.
Tingo Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 370.258 (Dec. 2022 ) + 56.846 (Mar. 2023 ) + -434.362 (Jun. 2023 ) + -277.315 (Sep. 2023 ) = $-285 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.
Tingo Group (OTCPK:TIOG) 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. 2023, Tingo Group has a Sloan Ratio of 9.34%, indicating the company is in the safe zone and there is no funny business with accruals.
Tingo Group Sloan Ratio % Related Terms
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Tingo Group Inc is a financial technology business focusing on the growth and development technology company currently selling insurance products across various cities in China, with planned expansion into additional markets. Tingo Group has developed scalable proprietary platforms for insurance products and financial services and products, the technology for which is adaptable for other applications and markets. It is a Fintech and Agri-Fintech group of companies with operations in Africa, Southeast Asia and the Middle East.
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