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World Acceptance (MEX:WRLD) Sloan Ratio %

: -5.34% (As of Dec. 2022)
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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.

World Acceptance's Sloan Ratio for the quarter that ended in Dec. 2022 was -5.34%.

As of Dec. 2022, World Acceptance has a Sloan Ratio of -5.34%, indicating the company is in the safe zone and there is no funny business with accruals.


World Acceptance Sloan Ratio % Historical Data

The historical data trend for World Acceptance'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.

World Acceptance Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.05 2.55 -5.94 19.15 -

World Acceptance Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
Sloan Ratio % 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 Premium Member Only Premium Member Only Premium Member Only 19.76 18.77 7.60 -5.34 -

Competitive Comparison

For the Credit Services subindustry, World Acceptance'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.

   

World Acceptance Sloan Ratio % Distribution

For the Credit Services industry and Financial Services sector, World Acceptance's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where World Acceptance's Sloan Ratio % falls in comparison to its industry or sector. The grey bar indicates the Sloan Ratio %'s extreme value range as defined by GuruFocus.



World Acceptance 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.

World Acceptance's Sloan Ratio for the fiscal year that ended in Mar. 2022 is calculated as

Sloan Ratio=(Net Income (A: Mar. 2022 )-Cash Flow from Operations (A: Mar. 2022 )
-Cash Flow from Investing (A: Mar. 2022 ))/Total Assets (A: Mar. 2022 )
=(1073.601-5604.528
--9177.438)/24257.512
=19.15%

World Acceptance's Sloan Ratio for the quarter that ended in Dec. 2022 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2022 )
=(273.705-6369.733
--4830.177)/23726.203
=-5.34%

World Acceptance's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was 366.004 (Mar. 2022 ) + -177.099 (Jun. 2022 ) + -27.477 (Sep. 2022 ) + 112.277 (Dec. 2022 ) = MXN274 Mil.
World Acceptance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2022 was 2271.268 (Mar. 2022 ) + 1170.405 (Jun. 2022 ) + 1578.625 (Sep. 2022 ) + 1349.435 (Dec. 2022 ) = MXN6,370 Mil.
World Acceptance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2022 was -510.638 (Mar. 2022 ) + -2702.813 (Jun. 2022 ) + -809.689 (Sep. 2022 ) + -807.037 (Dec. 2022 ) = MXN-4,830 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.


World Acceptance  (MEX:WRLD) 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. 2022, World Acceptance has a Sloan Ratio of -5.34%, indicating the company is in the safe zone and there is no funny business with accruals.


World Acceptance Sloan Ratio % Related Terms

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World Acceptance (MEX:WRLD) Business Description

World Acceptance logo
Traded in Other Exchanges
Address
104 S. Main Street, Greenville, SC, USA, 29601
World Acceptance Corp operates a small-loan consumer finance business. The company offers short-term small installment loans, medium-term larger installment loans, related credit insurance and ancillary products and services to individuals. It also offers income tax return preparation services to its loan customers and other individuals.

World Acceptance (MEX:WRLD) Headlines

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