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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.
TSS's Sloan Ratio for the quarter that ended in Mar. 2024 was -25.89%.
Warning Sign:
When sloan ratio (33.59)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, TSS has a Sloan Ratio of -25.89%, indicating earnings are more likely to be made up of accruals.
The historical data trend for TSS'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.
TSS Annual Data | |||||||||||||||||||||
Trend | Dec14 | Dec15 | Dec16 | Dec17 | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | Dec23 | |||||||||||
Sloan Ratio % | Get a 7-Day Free Trial | -14.06 | -39.99 | 47.81 | -45.37 | 33.59 |
TSS Quarterly Data | ||||||||||||||||||||
Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | |
Sloan Ratio % | Get a 7-Day Free Trial | 15.90 | -43.01 | -46.14 | 33.59 | -25.89 |
For the Information Technology Services subindustry, TSS'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.
For the Software industry and Technology sector, TSS's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where TSS's Sloan Ratio % falls into.
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.
TSS's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sloan Ratio | = | (Net Income (A: Dec. 2023 ) | - | Cash Flow from Operations (A: Dec. 2023 ) |
- | Cash Flow from Investing (A: Dec. 2023 )) | / | Total Assets (A: Dec. 2023 ) | |
= | (0.074 | - | -8.269 | |
- | -0.257) | / | 25.6 | |
= | 33.59% |
TSS's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as
Sloan Ratio | = | (Net Income (TTM) | - | Cash Flow from Operations (TTM)) |
- | Cash Flow from Investing (TTM)) | / | Total Assets (Q: Mar. 2024 ) | |
= | (0.875 | - | 7.922 | |
- | -0.111) | / | 26.791 | |
= | -25.89% |
TSS's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 0.315 (Jun. 2023 ) + 0.209 (Sep. 2023 ) + 0.336 (Dec. 2023 ) + 0.015 (Mar. 2024 ) = $0.88 Mil. TSS's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 17.535 (Jun. 2023 ) + 4.589 (Sep. 2023 ) + -16.848 (Dec. 2023 ) + 2.646 (Mar. 2024 ) = $7.92 Mil. TSS's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.02 (Jun. 2023 ) + -0.035 (Sep. 2023 ) + -0.017 (Dec. 2023 ) + -0.039 (Mar. 2024 ) = $-0.11 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.
TSS (OTCPK:TSSI) 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. 2024, TSS has a Sloan Ratio of -25.89%, indicating earnings are more likely to be made up of accruals.
Thank you for viewing the detailed overview of TSS's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Darryll E Dewan | director, officer: President and CEO | 4400 VIA ESPERANZA, SANTA BARBARA CA 93110 |
Richard M. Metzler | director | 1805 WEST AVENUE, AUSTIN TX 78701 |
Matt Crichton | officer: Sr. V.P., Business Development | 101 LOCHINVAR COURT, CARY NC 27511 |
Kieran Brennan | officer: Sr. V.P., Sales & Marketing | 5131 BRIARGROVE LANE, DALLAS TX 75287 |
Gerard J Gallagher | director, 10 percent owner, officer: President and COO | 7226 LEE DEFOREST DRIVE, SUITE 104, COLUMBIA MD 21046 |
Glen Ikeda | 10 percent owner | P.O. BOX 3306, AUBURN CA 95604 |
Peter H Woodward | director | 30 WEST 63RD STREET, SUITE 18G, NEW YORK NY 10023 |
John K Penver | officer: Interim CFO | 3709 HUMBLE COVE, AUSTIN TX 78730 |
Martin T. Olsen | officer: Exec. VP, Sales & Marketing | 2128 W. BRAKER LANE BK12, AUSTIN TX 78758 |
Thomas P Rosato | director, 10 percent owner, officer: Chief Executive Officer | 7226 LEE DEFOREST DRIVE, SUITE 104, COLUMBIA MD 21046 |
Maura Mcnerney | officer: Chief Financial Officer | 7226 LEE DEFOREST DRIVE, SUITE 104, COLUMBIA MD 21046 |
Ken Schwarz | officer: Chief Financial Officer | 14901 BOGLE DRIVE, SUITE 300, CHANTILLY VA 20151 |
Daniel J Phelps | director | 1001 O'BRIEN DRIVE, MENLO PARK CA 94025 |
Anthony Angelini | director, officer: Chief Executive Officer | |
Tarsier Nanocap Value Fund, Lp | 10 percent owner, other: see footnote #1 | C/O HUMMINGBIRD MANAGEMENT, LLC, 145 E. 57TH STREET, 8TH FLOOR, NEW YORK NY 10022 |
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