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.
Thomson Reuters's Sloan Ratio for the quarter that ended in Dec. 2023 was -17.16%.
As of Dec. 2023, Thomson Reuters has a Sloan Ratio of -17.16%, indicating there is a warning stage of accrual build up.
Thomson Reuters Sloan Ratio % Historical Data
The historical data trend for Thomson Reuters'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 Thomson Reuters's Sloan Ratio %
For the Specialty Business Services subindustry, Thomson Reuters'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.
Thomson Reuters's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Thomson Reuters's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Thomson Reuters's Sloan Ratio % falls into.
Thomson Reuters 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.
Thomson Reuters's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Thomson Reuters's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 706.104 (Mar. 2023 ) + 825.162 (Jun. 2023 ) + 343.879 (Sep. 2023 ) + 621.726 (Dec. 2023 ) = €2,497 Mil.
Thomson Reuters's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 249.378 (Mar. 2023 ) + 641.485 (Jun. 2023 ) + 631.538 (Sep. 2023 ) + 646.485 (Dec. 2023 ) = €2,169 Mil.
Thomson Reuters's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 1557.912 (Mar. 2023 ) + 1507.259 (Jun. 2023 ) + 407.595 (Sep. 2023 ) + -204.491 (Dec. 2023 ) = €3,268 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.
Thomson Reuters (STU:TOC) 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, Thomson Reuters has a Sloan Ratio of -17.16%, indicating there is a warning stage of accrual build up.
Thomson Reuters Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Thomson Reuters's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Thomson Reuters is the result of the $17.6 billion megamerger of Canada's Thomson and the United Kingdom's Reuters Group in 2008. In 2021, Thomson Reuters completed the sale of Refinitiv to LSE Group. Thomson Reuters' three largest segments are its legal professionals, Tax and accounting, and corporates segments. Legal professionals is about 42% of the firm's revenue and 47% of the firm's adjusted EBITDA. Tax and accounting makes up about 20%-25% of the firm's revenue and EBITDA. Corporates, which consists of legal professionals and tax and accounting products sold to corporations, also makes up about 20%-25% of the firm's revenue and EBITDA. Thomson Reuters' smaller segments include its Reuters news business and global print business.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
STU:TOC has been successfully added to your 