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.
Korn Ferry's Sloan Ratio for the quarter that ended in Jan. 2022 was 1.50%.
As of Jan. 2022, Korn Ferry has a Sloan Ratio of 1.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Korn Ferry Sloan Ratio % Historical Data
The historical data trend for Korn Ferry'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.
Korn Ferry Annual Data
Trend
Apr12
Apr13
Apr14
Apr15
Apr16
Apr17
Apr18
Apr19
Apr20
Apr21
Sloan Ratio %
-0.07
-1.77
-3.71
2.45
-2.47
Korn Ferry Quarterly Data
Apr17
Jul17
Oct17
Jan18
Apr18
Jul18
Oct18
Jan19
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Sloan Ratio %
-5.17
-2.47
1.48
1.17
1.50
Competitive Comparison
For the Staffing & Employment Services subindustry, Korn Ferry'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.
Korn Ferry Sloan Ratio % Distribution
For the Business Services industry and Industrials sector, Korn Ferry's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Korn Ferry's Sloan Ratio % falls into.
Korn Ferry 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.
Korn Ferry's Sloan Ratio for the fiscal year that ended in Apr. 2021 is calculated as
Korn Ferry's Net Income for the trailing twelve months (TTM) ended in Jan. 2022 was 66.19 (Apr. 2021 ) + 74.823 (Jul. 2021 ) + 75.772 (Oct. 2021 ) + 84.101 (Jan. 2022 ) = $301 Mil.
Korn Ferry's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2022 was 197.128 (Apr. 2021 ) + -160.545 (Jul. 2021 ) + 118.021 (Oct. 2021 ) + 264.001 (Jan. 2022 ) = $419 Mil.
Korn Ferry's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2022 was -31.078 (Apr. 2021 ) + -10.353 (Jul. 2021 ) + -20.917 (Oct. 2021 ) + -105.283 (Jan. 2022 ) = $-168 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.
Korn Ferry (NYSE:KFY) 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 Jan. 2022, Korn Ferry has a Sloan Ratio of 1.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Korn Ferry Sloan Ratio % Related Terms
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Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The largest of its revenue segments is its advisory segment, which provides consulting services related to organizational structure. The executive search segment provides executive-level talent sourcing. The recruitment process outsourcing and professional search segment provide broad-level talent sourcing and digital segment. The company has operations in North America, Asia-Pacific, Latin America, and other regions.
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