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.
New Work SE's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.43%.
As of Dec. 2023, New Work SE has a Sloan Ratio of -2.43%, indicating the company is in the safe zone and there is no funny business with accruals.
New Work SE Sloan Ratio % Historical Data
The historical data trend for New Work SE'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 New Work SE's Sloan Ratio %
For the Internet Content & Information subindustry, New Work SE'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.
New Work SE's Sloan Ratio % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, New Work SE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where New Work SE's Sloan Ratio % falls into.
New Work SE 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.
New Work SE's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
New Work SE's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 7.091 (Mar. 2023 ) + 9.971 (Jun. 2023 ) + 13.496 (Sep. 2023 ) + 6.294 (Dec. 2023 ) = €36.9 Mil.
New Work SE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 33.936 (Mar. 2023 ) + 16.704 (Jun. 2023 ) + 7.082 (Sep. 2023 ) + 4.189 (Dec. 2023 ) = €61.9 Mil.
New Work SE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -9.108 (Mar. 2023 ) + -8.988 (Jun. 2023 ) + 6.82 (Sep. 2023 ) + -5.311 (Dec. 2023 ) = €-16.6 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.
New Work SE (XTER:NWO) 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, New Work SE has a Sloan Ratio of -2.43%, indicating the company is in the safe zone and there is no funny business with accruals.
New Work SE Sloan Ratio % Related Terms
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New Work SE is a German technology company offering online business platforms for professionals to network and share ideas, and jobs opportunities, among others. The company organizes itself into three business segments: B2C, B2B e-recruiting and B2B marketing solutions. The B2C segment serves the members of social networking websites such as kunnu.com or xing.com to network with professionals and find suitable jobs, the B2B e-recruiting segment serves customers who want to access the talent pool, B2B marketing solutions & events cater to advertising and events clients, and the kunnu International segment includes business activities outside Germany, Austria and Switzerland. The B2B e-recruiting segments generate the majority of the company's revenue.
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