What is Cognizant Technology Solutions Sloan Ratio %?
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 Dec. 2023, Cognizant Technology Solutions has a Sloan Ratio of 0.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Cognizant Technology Solutions 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.
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Cognizant Technology Solutions Sloan Ratio % Chart
Competitive Comparison of Cognizant Technology Solutions's Sloan Ratio %
For the Information Technology Services subindustry, Cognizant Technology Solutions'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.
Cognizant Technology Solutions's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Cognizant Technology Solutions's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's Sloan Ratio % falls into.
Cognizant Technology Solutions 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.
Cognizant Technology Solutions's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 580 (Mar. 2023 ) + 463 (Jun. 2023 ) + 525 (Sep. 2023 ) + 558 (Dec. 2023 ) = $2,126 Mil.
Cognizant Technology Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 729 (Mar. 2023 ) + 36 (Jun. 2023 ) + 828 (Sep. 2023 ) + 737 (Dec. 2023 ) = $2,330 Mil.
Cognizant Technology Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -215 (Mar. 2023 ) + -85 (Jun. 2023 ) + -199 (Sep. 2023 ) + 168 (Dec. 2023 ) = $-331 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.
Cognizant Technology Solutions (NAS:CTSH) 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 Dec. 2023, Cognizant Technology Solutions has a Sloan Ratio of 0.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Cognizant Technology Solutions Sloan Ratio % Related Terms
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Cognizant Technology Solutions (Cognizant Technology Solutions) Business Description
Cognizant is a global IT services provider, offering consulting and outsourcing services to some of the world's largest enterprises spanning the financial services, media and communications, healthcare, natural resources, and consumer products industries. Cognizant employs nearly 300,000 people globally, roughly 70% of whom are in India, although the company's headquarters are in Teaneck, New Jersey.
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