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Micropro Software Solutions (NSE:MICROPRO) Sloan Ratio % : 16.86% (As of Mar. 2023)


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What is Micropro Software Solutions Sloan Ratio %?

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.

Micropro Software Solutions's Sloan Ratio for the quarter that ended in Mar. 2023 was 16.86%.

As of Mar. 2023, Micropro Software Solutions has a Sloan Ratio of 16.86%, indicating there is a warning stage of accrual build up.


Micropro Software Solutions Sloan Ratio % Historical Data

The historical data trend for Micropro Software Solutions'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.

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Micropro Software Solutions Sloan Ratio % Chart

Micropro Software Solutions Annual Data
Trend Mar21 Mar22 Mar23
Sloan Ratio %
-1.72 21.52 16.86

Micropro Software Solutions Semi-Annual Data
Mar21 Mar22 Mar23
Sloan Ratio % - 21.52 16.86

Competitive Comparison of Micropro Software Solutions's Sloan Ratio %

For the Information Technology Services subindustry, Micropro Software Solutions'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.


Micropro Software Solutions's Sloan Ratio % Distribution in the Software Industry

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

* The bar in red indicates where Micropro Software Solutions's Sloan Ratio % falls into.



Micropro Software Solutions 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.

Micropro Software Solutions's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as

Sloan Ratio=(Net Income (A: Mar. 2023 )-Cash Flow from Operations (A: Mar. 2023 )
-Cash Flow from Investing (A: Mar. 2023 ))/Total Assets (A: Mar. 2023 )
=(59.223-16.251
--0.19)/255.957
=16.86%

Micropro Software Solutions's Sloan Ratio for the quarter that ended in Mar. 2023 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2023 )
=(-
-)/
=%

Micropro Software Solutions does not have enough years/quarters to calculate the Net Income, Cash Flow from Investing, and Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2023.

* 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.


Micropro Software Solutions  (NSE:MICROPRO) 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 Mar. 2023, Micropro Software Solutions has a Sloan Ratio of 16.86%, indicating there is a warning stage of accrual build up.


Micropro Software Solutions Sloan Ratio % Related Terms

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Micropro Software Solutions (NSE:MICROPRO) Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Gayatri Nagar Road, Plot NO. 28, 102 Wing A, 7th Floor, VIPL IT Park Building, Nagpur, MH, IND, 440022
Micropro Software Solutions Ltd is engaged in the business of providing software development, maintenance services as well as trading of hardware and software products. The company provides consulting along with technical services and IT solutions to its clients across different industries. The services offered by the company include IT Infrastructure Management, Manpower Services, Network and Security Services among others. It also offers software products such as HospyCare, OpenSys-Logix, OpenSys MicroBooks and others.

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