GURUFOCUS.COM » STOCK LIST » Technology » Software » Paysafe Ltd (NYSE:PSFE) » Definitions » Sloan Ratio %

Paysafe (Paysafe) Sloan Ratio %

: -2.28% (As of Dec. 2023)
View and export this data going back to 2021. Start your Free Trial

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.

Paysafe's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.28%.

As of Dec. 2023, Paysafe has a Sloan Ratio of -2.28%, indicating the company is in the safe zone and there is no funny business with accruals.


Paysafe Sloan Ratio % Historical Data

The historical data trend for Paysafe'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.

Paysafe Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Premium Member Only -3.26 -6.54 0.53 -25.59 -2.28

Paysafe Quarterly Data
Dec18 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -25.59 -2.74 29.81 30.67 -2.28

Competitive Comparison

For the Software - Infrastructure subindustry, Paysafe'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.


Paysafe Sloan Ratio % Distribution

For the Software industry and Technology sector, Paysafe's Sloan Ratio % distribution charts can be found below:

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



Paysafe 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.

Paysafe's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(-20.251-234.022
--135.237)/5227.701
=-2.28%

Paysafe's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2023 )
=(-20.251-234.022
--135.237)/5227.701
=-2.28%

Paysafe's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -3.808 (Mar. 2023 ) + -1.765 (Jun. 2023 ) + -2.549 (Sep. 2023 ) + -12.129 (Dec. 2023 ) = $-20 Mil.
Paysafe's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -118.961 (Mar. 2023 ) + -233.924 (Jun. 2023 ) + -2.483 (Sep. 2023 ) + 589.39 (Dec. 2023 ) = $234 Mil.
Paysafe's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -32.543 (Mar. 2023 ) + -42.465 (Jun. 2023 ) + -50.553 (Sep. 2023 ) + -9.676 (Dec. 2023 ) = $-135 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.


Paysafe  (NYSE:PSFE) 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. 2023, Paysafe has a Sloan Ratio of -2.28%, indicating the company is in the safe zone and there is no funny business with accruals.


Paysafe Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of Paysafe's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


Paysafe (Paysafe) Business Description

Traded in Other Exchanges
Address
25 Canada Square, 27th Floor, London, GBR, E14 5LQ
Paysafe Ltd is an integrated payments platform. Its core purpose is to enable businesses and consumers to connect and transact seamlessly through capabilities in payment processing, digital wallet, and online cash solutions. The company provides payment solutions through three primary lines of business: Integrated Processing, Digital Wallet, and eCash Solutions. It derives a majority of revenue from the USA followed by Germany, the UK, and all other countries.