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, Dun & Bradstreet Holdings has a Sloan Ratio of -3.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Dun & Bradstreet Holdings 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 Dun & Bradstreet Holdings's Sloan Ratio %
For the Financial Data & Stock Exchanges subindustry, Dun & Bradstreet Holdings'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.
Dun & Bradstreet Holdings's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Dun & Bradstreet Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dun & Bradstreet Holdings's Sloan Ratio % falls into.
Dun & Bradstreet Holdings 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.
Dun & Bradstreet Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Dun & Bradstreet Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -33.7 (Mar. 2023 ) + -19.4 (Jun. 2023 ) + 4.4 (Sep. 2023 ) + 1.7 (Dec. 2023 ) = $-47 Mil.
Dun & Bradstreet Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 155.7 (Mar. 2023 ) + 58.9 (Jun. 2023 ) + 69.1 (Sep. 2023 ) + 168.5 (Dec. 2023 ) = $452 Mil.
Dun & Bradstreet Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -39.6 (Mar. 2023 ) + -41.6 (Jun. 2023 ) + -39.1 (Sep. 2023 ) + -71.5 (Dec. 2023 ) = $-192 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.
Dun & Bradstreet Holdings (NYSE:DNB) 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, Dun & Bradstreet Holdings has a Sloan Ratio of -3.36%, indicating the company is in the safe zone and there is no funny business with accruals.
Dun & Bradstreet Holdings Sloan Ratio % Related Terms
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Dun & Bradstreet Holdings (Dun & Bradstreet Holdings) Business Description
Dun & Bradstreet Holdings Inc is a provider of business decisioning data and analytics. The company operates in two segments: North America, which offers Finance & Risk and Sales & Marketing data, analytics, and business insights in the United States and Canada; and International, which offers Finance & Risk and Sales & Marketing data, analytics, and business insights directly in the U.K, Europe, Greater China, India and indirectly through its WWN alliances. The company generates maximum revenue from the North American region. Other services provided by the company include digital marketing, sales acceleration, and risk management among others.
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