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.
Perdoceo Education's Sloan Ratio for the quarter that ended in Mar. 2024 was 8.42%.
As of Mar. 2024, Perdoceo Education has a Sloan Ratio of 8.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Perdoceo Education Sloan Ratio % Historical Data
The historical data trend for Perdoceo Education'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 Perdoceo Education's Sloan Ratio %
For the Education & Training Services subindustry, Perdoceo Education'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.
Perdoceo Education's Sloan Ratio % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Perdoceo Education's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Perdoceo Education's Sloan Ratio % falls into.
Perdoceo Education 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.
Perdoceo Education's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Perdoceo Education's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 54.673 (Jun. 2023 ) + 41.307 (Sep. 2023 ) + 17.188 (Dec. 2023 ) + 39.442 (Mar. 2024 ) = $152.6 Mil.
Perdoceo Education's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 61.648 (Jun. 2023 ) + 32.613 (Sep. 2023 ) + 13.192 (Dec. 2023 ) + 54.492 (Mar. 2024 ) = $161.9 Mil.
Perdoceo Education's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -9.112 (Jun. 2023 ) + -0.721 (Sep. 2023 ) + -57.315 (Dec. 2023 ) + -30.801 (Mar. 2024 ) = $-97.9 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.
Perdoceo Education (NAS:PRDO) 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 Mar. 2024, Perdoceo Education has a Sloan Ratio of 8.42%, indicating the company is in the safe zone and there is no funny business with accruals.
Perdoceo Education Sloan Ratio % Related Terms
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Perdoceo Education (Perdoceo Education) Business Description
Perdoceo Education Corp is an American for-profit education company that focuses on quality postsecondary education online to a diverse student population, along with campus-based and blended learning programs. The company's important segment is its online universities, which include the American InterContinental University, and Colorado Technical University. These online universities provide undergraduate, graduate, and doctoral degree programs focusing on business, technology, management, and social services. Career Education Corporation is focusing on its online universities as it continues to reduce its on-campus program offerings. The majority of the company's revenue comes from the Colorado Technical University segment.
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