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.
Navigant Consulting's Sloan Ratio for the quarter that ended in Jun. 2019 was -34.28%.
As of Jun. 2019, Navigant Consulting has a Sloan Ratio of -34.28%, indicating earnings are more likely to be made up of accruals.
Navigant Consulting Sloan Ratio % Historical Data
The historical data trend for Navigant Consulting'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 Navigant Consulting's Sloan Ratio %
For the Specialty Business Services subindustry, Navigant Consulting'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.
Navigant Consulting's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Navigant Consulting's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Navigant Consulting's Sloan Ratio % falls into.
Navigant Consulting 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.
Navigant Consulting's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
Navigant Consulting's Net Income for the trailing twelve months (TTM) ended in Jun. 2019 was 74.045 (Sep. 2018 ) + 5.918 (Dec. 2018 ) + 4.281 (Mar. 2019 ) + 9.079 (Jun. 2019 ) = $93.3 Mil.
Navigant Consulting's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2019 was 24.693 (Sep. 2018 ) + -5.8 (Dec. 2018 ) + -31.139 (Mar. 2019 ) + 13.454 (Jun. 2019 ) = $1.2 Mil.
Navigant Consulting's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2019 was 422.263 (Sep. 2018 ) + -4.253 (Dec. 2018 ) + -9.007 (Mar. 2019 ) + -5.567 (Jun. 2019 ) = $403.4 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.
Navigant Consulting (NYSE:NCI) 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 Jun. 2019, Navigant Consulting has a Sloan Ratio of -34.28%, indicating earnings are more likely to be made up of accruals.
Navigant Consulting Sloan Ratio % Related Terms
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Navigant Consulting (Navigant Consulting) Business Description
Navigant Consulting Inc is an America-based professional services firm. The company operates through four segments. The disputes, investigations & economics segment provides valuation and economic analysis services and forensic services. The financial, risk & compliance segment provides advisory services concerning strategy, operation, valuation, risk management and more. Clients of this segment are primarily from the financial services industry. The healthcare segment provides consulting services and business process management services primarily to healthcare providers, payers and life science companies. The energy segment provides management advisory services. The United States accounts for the majority of the company's revenue.
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