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 Mar. 2022, Bottomline Technologies has a Sloan Ratio of -8.89%, indicating the company is in the safe zone and there is no funny business with accruals.
Bottomline Technologies 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 Bottomline Technologies's Sloan Ratio %
For the Software - Infrastructure subindustry, Bottomline Technologies'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.
Bottomline Technologies's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Bottomline Technologies's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bottomline Technologies's Sloan Ratio % falls into.
Bottomline Technologies 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.
Bottomline Technologies's Sloan Ratio for the fiscal year that ended in Jun. 2021 is calculated as
Bottomline Technologies's Net Income for the trailing twelve months (TTM) ended in Mar. 2022 was -7.295 (Jun. 2021 ) + -4.907 (Sep. 2021 ) + -16.634 (Dec. 2021 ) + -7.524 (Mar. 2022 ) = $-36.4 Mil.
Bottomline Technologies's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2022 was 14.719 (Jun. 2021 ) + 10.246 (Sep. 2021 ) + 18.184 (Dec. 2021 ) + 34.82 (Mar. 2022 ) = $78.0 Mil.
Bottomline Technologies's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2022 was -8.514 (Jun. 2021 ) + -9.786 (Sep. 2021 ) + -18.055 (Dec. 2021 ) + -7.247 (Mar. 2022 ) = $-43.6 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.
Bottomline Technologies (NAS:EPAY) 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 Mar. 2022, Bottomline Technologies has a Sloan Ratio of -8.89%, indicating the company is in the safe zone and there is no funny business with accruals.
Bottomline Technologies Sloan Ratio % Related Terms
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Bottomline Technologies (Bottomline Technologies) Business Description
Bottomline Technologies Inc provides financial oriented solutions. It is a trusted and easy-to-use set of cloud-based digital banking, fraud prevention, payment, financial document, and healthcare solutions. Bottomline consists of four operating segments: Cloud Solutions segment provides customers predominately with SaaS technology offerings that facilitate electronic payment, electronic invoicing and spend management; Digital Banking segment provides solutions that are specifically designed for banking and financial institution customers; Payments and Transactional Documents segment is a supplier of software products that provide a range of financial business process management solutions; and Other segment consists of healthcare and cyber fraud and risk management operating segments.
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