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.
LiveRamp Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -8.32%.
As of Dec. 2023, LiveRamp Holdings has a Sloan Ratio of -8.32%, indicating the company is in the safe zone and there is no funny business with accruals.
LiveRamp Holdings Sloan Ratio % Historical Data
The historical data trend for LiveRamp Holdings'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 LiveRamp Holdings's Sloan Ratio %
For the Software - Infrastructure subindustry, LiveRamp Holdings'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.
LiveRamp Holdings's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, LiveRamp Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where LiveRamp Holdings's Sloan Ratio % falls into.
LiveRamp Holdings 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.
LiveRamp Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
LiveRamp Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -31.364 (Mar. 2023 ) + -1.586 (Jun. 2023 ) + 4.863 (Sep. 2023 ) + 13.977 (Dec. 2023 ) = $-14.1 Mil.
LiveRamp Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 35.233 (Mar. 2023 ) + 25.693 (Jun. 2023 ) + 36.151 (Sep. 2023 ) + 17.154 (Dec. 2023 ) = $114.2 Mil.
LiveRamp Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -24.306 (Mar. 2023 ) + -0.553 (Jun. 2023 ) + 0.665 (Sep. 2023 ) + -2.211 (Dec. 2023 ) = $-26.4 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.
LiveRamp Holdings (NYSE:RAMP) 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, LiveRamp Holdings has a Sloan Ratio of -8.32%, indicating the company is in the safe zone and there is no funny business with accruals.
LiveRamp Holdings Sloan Ratio % Related Terms
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LiveRamp Holdings (LiveRamp Holdings) Business Description
LiveRamp's cloud-based software helps businesses combine their data (first-party data) about customer touch points such as on webpages, mobile apps, in stores, and on other devices with data from other sources to get a better view of a current or potential customer's activity. Such combined data can help businesses and advertisers create better profiles of their customers. The software is also used by publishers to easily combine their data with that of advertisers, helping them to optimize their ad inventory. LiveRamp generates revenue through a one-year subscription model (around 80% of total revenue) for its software. The firm also provides a marketplace for third-party data owners and data buyers, around 20% of total revenue.
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