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Resources Connection Sloan Ratio %

: 3.62% (As of Aug. 2021)
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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.

Resources Connection's Sloan Ratio for the quarter that ended in Aug. 2021 was 3.62%.

As of Aug. 2021, Resources Connection has a Sloan Ratio of 3.62%, indicating the company is in the safe zone and there is no funny business with accruals.


Resources Connection Sloan Ratio % Historical Data

The historical data trend for Resources Connection'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.

Resources Connection Annual Data
Trend May12 May13 May14 May15 May16 May17 May18 May19 May20 May21
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -8.25 6.73 0.17 1.05 -2.09

Resources Connection Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 -8.19 -9.11 -10.79 -2.09 3.62

Competitive Comparison

For the Consulting Services subindustry, Resources Connection'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.

   

Resources Connection Sloan Ratio % Distribution

For the Business Services industry and Industrials sector, Resources Connection's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Resources Connection's Sloan Ratio % falls into.



Resources Connection 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.

Resources Connection's Sloan Ratio for the fiscal year that ended in May. 2021 is calculated as

Sloan Ratio=(Net Income (A: May. 2021 )-Cash Flow from Operations (A: May. 2021 )
-Cash Flow from Investing (A: May. 2021 ))/Total Assets (A: May. 2021 )
=(25.229-39.943
--3.843)/520.644
=-2.09%

Resources Connection's Sloan Ratio for the quarter that ended in Aug. 2021 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM})
-Cash Flow from Investing (TTM))/Total Assets (Q: Aug. 2021 )
=(35.869-21.821
--4.602)/514.635
=3.62%

Resources Connection's Net Income for the trailing twelve months (TTM) ended in Aug. 2021 was -0.992 (Nov. 2020 ) + 0.69 (Feb. 2021 ) + 23.248 (May. 2021 ) + 12.923 (Aug. 2021 ) = $35.9 Mil.
Resources Connection's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2021 was 10.991 (Nov. 2020 ) + 5.794 (Feb. 2021 ) + 4.572 (May. 2021 ) + 0.464 (Aug. 2021 ) = $21.8 Mil.
Resources Connection's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2021 was -1.387 (Nov. 2020 ) + -1.212 (Feb. 2021 ) + -0.997 (May. 2021 ) + -1.006 (Aug. 2021 ) = $-4.6 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.


Resources Connection  (NAS:RGP) 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 Aug. 2021, Resources Connection has a Sloan Ratio of 3.62%, indicating the company is in the safe zone and there is no funny business with accruals.


Resources Connection Sloan Ratio % Related Terms

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Resources Connection Business Description

Resources Connection logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
17101 Armstrong Avenue, Suite 100, Irvine, CA, USA, 92614
Resources Connection Inc provides consulting and business initiative support services primarily through its operative subsidiary, Resources Global Professionals. The company offers transformation and improvement, financial reporting and analysis, strategy development, and program and project management services and support. Its clients operate in the accounting, finance, corporate governance, risk and compliance management, corporate advisory, strategic communications and restructuring, information management, human capital, supply chain management, and legal and regulatory sectors.
Executives
Duchene Kate W director, officer: President & CEO C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Ryu Jennifer Y officer: CFO 17101 ARMSTRONG AVENUE IRVINE CA 92614
Pisano A Robert director C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Von Maltzan Marco director 17101 ARMSTRONG AVE #100 RGP IRVINE CA 92614
Crawford Susan J director 17101 ARMSTRONG AVE IRVINE CA 92614
Shih Anne director 17101 ARMSTRONG AVENUE IRVINE CA 92614
Wargotz Michael H director AXCESS WORLDWIDE 515 MADISON AVE., 15TH FLOOR NEW YORK NY 10022
Cherbak Anthony director 695 TOWN CENTER DRIVE SUITE 600 COSTA MESA CA 92626
Kistinger Robert F director 17101 ARMSTRONG AVE IRVINE CA 92614
Sykes Jolene director 695 TOWN CENTER DRIVE SUITE 606 COSTA MESA CA 92626
Dimick Neil F director BUILDING 4, TRIDENT PLACE MOSQUITO WAY HATFIELD, HERTFORDSHIRE X0 AL10 9UL
Brackney Timothy L officer: President and COO 12 ANDERSON WAY MENLO PARK CA 94025
Bower John D officer: Chief Accounting Officer C/O RESOURCES CONNECTION 695 TOWN CENTER DR COSTA MESA CA 92626
Murray Donald B director RESOURCES CONNECTION 695 TOWN CTR DR STE 600 COSTA MESA CA 92626
Mueller Herbert M officer: CFO & EVP PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: MUELLER HERBERT M a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

Resources Connection Headlines

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