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London Stock Exchange Group (London Stock Exchange Group) Sloan Ratio % : -0.10% (As of Dec. 2023)


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What is London Stock Exchange Group 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.

London Stock Exchange Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.10%.

As of Dec. 2023, London Stock Exchange Group has a Sloan Ratio of -0.10%, indicating the company is in the safe zone and there is no funny business with accruals.


London Stock Exchange Group Sloan Ratio % Historical Data

The historical data trend for London Stock Exchange 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.

* Premium members only.

London Stock Exchange Group Sloan Ratio % Chart

London Stock Exchange Group Annual Data
Trend Mar14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only - -0.04 -0.40 -0.06 -0.10

London Stock Exchange Group Semi-Annual Data
Mar14 Sep14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.42 -0.06 -0.06 -0.08 -0.10

Competitive Comparison of London Stock Exchange Group's Sloan Ratio %

For the Financial Data & Stock Exchanges subindustry, London Stock Exchange 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.


London Stock Exchange Group's Sloan Ratio % Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, London Stock Exchange Group's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where London Stock Exchange Group's Sloan Ratio % falls into.



London Stock Exchange 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.

London Stock Exchange Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(963.291-3724.051
--1732.911)/1019000
=-0.10%

London Stock Exchange Group's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2023 )
=(961.93-3720.521
--1730.556)/1019000
=-0.10%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. London Stock Exchange Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 537.879 (Jun. 2023 ) + 424.051 (Dec. 2023 ) = $962 Mil.
London Stock Exchange Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1393.939 (Jun. 2023 ) + 2326.582 (Dec. 2023 ) = $3,721 Mil.
London Stock Exchange Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -930.556 (Jun. 2023 ) + -800 (Dec. 2023 ) = $-1,731 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.


London Stock Exchange Group  (OTCPK:LNSTY) 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.

According to How to Beat the Market with the Sloan Ratio:

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, London Stock Exchange Group has a Sloan Ratio of -0.10%, indicating the company is in the safe zone and there is no funny business with accruals.


London Stock Exchange Group Sloan Ratio % Related Terms

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London Stock Exchange Group (London Stock Exchange Group) Business Description

Traded in Other Exchanges
Address
10 Paternoster Square, London, GBR, EC4M 7LS
London Stock Exchange Group is a fully integrated financial exchange company covering the financial market value chain from primary and secondary markets across multiple asset classes over data, index and analytics down to clearing and post-trading reporting. With the acquisition of Refinitiv, LSEG generates about two thirds of its revenue from data and analytics including its FTSE Russell and WM/Refinitiv benchmarks as well as data feeds and terminals. The group is also a majority shareholder in Tradeweb, one of the dominant global fixed income trading venues, as well as LCH, the largest clearing house for over-the-counter swaps globally.

London Stock Exchange Group (London Stock Exchange Group) Headlines

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