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 Jun. 2021, American Education Center has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
American Education Center 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 American Education Center's Sloan Ratio %
For the Consulting Services subindustry, American Education Center'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.
American Education Center's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, American Education Center's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where American Education Center's Sloan Ratio % falls into.
American Education Center 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.
American Education Center's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as
American Education Center's Net Income for the trailing twelve months (TTM) ended in Jun. 2021 was -1.169 (Sep. 2020 ) + -0.561 (Dec. 2020 ) + -0.299 (Mar. 2021 ) + -0.175 (Jun. 2021 ) = $-2.20 Mil.
American Education Center's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2021 was -0.281 (Sep. 2020 ) + -0.063 (Dec. 2020 ) + -0.008 (Mar. 2021 ) + -0.21 (Jun. 2021 ) = $-0.56 Mil.
American Education Center's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2021 was 0 (Sep. 2020 ) + 0 (Dec. 2020 ) + 0 (Mar. 2021 ) + 0 (Jun. 2021 ) = $0.00 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.
American Education Center (OTCPK:AMCT) 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 Jun. 2021, American Education Center has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
American Education Center Sloan Ratio % Related Terms
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American Education Center (American Education Center) Business Description
American Education Center Inc is a United States-based company engaged in the providing of consulting services. Its Consulting services include Placement Advisory Services, Career Advisory Services, Student & Family Advisory Services, and Other Advisory Services. The company operates in two segments namely AEC New York segment and AEC BVI segment. The majority of the revenue is generated from the AEC New York segment which capitalizes middle-class families in China for quality education and works experiences in the United States( US) and delivers customized high school and college placement and career advisory services to Chinese students wishing to study in the US.
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