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.
As of Mar. 2024, Maharah Human Resources Co has a Sloan Ratio of 2.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Maharah Human Resources Co Sloan Ratio % Historical Data
* 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 Maharah Human Resources Co's Sloan Ratio %
For the Staffing & Employment Services subindustry, Maharah Human Resources Co'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.
Maharah Human Resources Co's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Maharah Human Resources Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Maharah Human Resources Co's Sloan Ratio % falls into.
Maharah Human Resources Co 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.
Maharah Human Resources Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 39.298 (Jun. 2023 ) + 24.596 (Sep. 2023 ) + -3.321 (Dec. 2023 ) + 50.028 (Mar. 2024 ) = ﷼111 Mil.
Maharah Human Resources Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 58.817 (Jun. 2023 ) + 14.6 (Sep. 2023 ) + 66.078 (Dec. 2023 ) + -12.283 (Mar. 2024 ) = ﷼127 Mil.
Maharah Human Resources Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -22.534 (Jun. 2023 ) + -9.961 (Sep. 2023 ) + -48.707 (Dec. 2023 ) + 13.697 (Mar. 2024 ) = ﷼-68 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.
Maharah Human Resources Co (SAU:1831) 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, Maharah Human Resources Co has a Sloan Ratio of 2.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Maharah Human Resources Co Sloan Ratio % Related Terms
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Maharah Human Resources Co (SAU:1831) Business Description
Maharah Human Resources Co is a Saudi Arabia based company. The company is engaged in providing recruitment services for the public and private sectors. Its operating segment includes Corporate and Individual. The company generates maximum revenue from the Corporate segment. Geographically, it derives a majority of revenue from KSA and also has a presence in UAE. It serves individuals, industrial and operation, retail, hospitality, healthcare, and commercial sectors.
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