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.
Mastech Digital's Sloan Ratio for the quarter that ended in Dec. 2023 was -21.76%.
As of Dec. 2023, Mastech Digital has a Sloan Ratio of -21.76%, indicating there is a warning stage of accrual build up.
Mastech Digital Sloan Ratio % Historical Data
The historical data trend for Mastech Digital'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.
Competitive Comparison of Mastech Digital's Sloan Ratio %
For the Staffing & Employment Services subindustry, Mastech Digital'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.
Mastech Digital's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Mastech Digital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mastech Digital's Sloan Ratio % falls into.
Mastech Digital 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.
Mastech Digital's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Mastech Digital's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.261 (Mar. 2023 ) + -2.173 (Jun. 2023 ) + 0.125 (Sep. 2023 ) + -5.351 (Dec. 2023 ) = $-7.1 Mil.
Mastech Digital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3.131 (Mar. 2023 ) + 9.976 (Jun. 2023 ) + -2.562 (Sep. 2023 ) + 5.433 (Dec. 2023 ) = $16.0 Mil.
Mastech Digital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.007 (Mar. 2023 ) + -0.035 (Jun. 2023 ) + -0.052 (Sep. 2023 ) + -0.122 (Dec. 2023 ) = $-0.2 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.
Mastech Digital (AMEX:MHH) 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, Mastech Digital has a Sloan Ratio of -21.76%, indicating there is a warning stage of accrual build up.
Mastech Digital Sloan Ratio % Related Terms
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Mastech Digital (Mastech Digital) Business Description
Mastech Digital Inc is a provider of Digital Transformation IT Services. The Company offers data & analytics solutions & IT staffing services for both digital & mainstream technologies. The Group has two segments. Its Data & Analytics Services segment delivers specialized data management, data engineering, customer experience consulting, data analytics & cloud services to customers globally. IT Staffing Services segment combines technical expertise with business process experience to deliver a broad range of services in digital & mainstream technologies. Its digital transformation services also include staffing & project-based services around digital learning. The company derives a majority of its revenue from IT staffing services. Geographically, the majority is from the United States.
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