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.
Service International's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.84%.
As of Dec. 2023, Service International has a Sloan Ratio of 0.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Service International Sloan Ratio % Historical Data
The historical data trend for Service International'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 Service International's Sloan Ratio %
For the Personal Services subindustry, Service International'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.
Service International's Sloan Ratio % Distribution in the Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Service International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Service International's Sloan Ratio % falls into.
Service International 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.
Service International's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Service International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 144.763 (Mar. 2023 ) + 132.188 (Jun. 2023 ) + 121.971 (Sep. 2023 ) + 138.395 (Dec. 2023 ) = $537 Mil.
Service International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 219.572 (Mar. 2023 ) + 144.071 (Jun. 2023 ) + 227.815 (Sep. 2023 ) + 277.585 (Dec. 2023 ) = $869 Mil.
Service International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -94.894 (Mar. 2023 ) + -116.203 (Jun. 2023 ) + -145.492 (Sep. 2023 ) + -112.797 (Dec. 2023 ) = $-469 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.
Service International (NYSE:SCI) 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, Service International has a Sloan Ratio of 0.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Service International Sloan Ratio % Related Terms
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Service International (Service International) Business Description
Service Corp International is a personal services company that provides funeral and cemetery services and products from its locations throughout the United States and Canada. The company segments its operations into funeral service and cemetery business functions. At its funeral service locations, Service Corp. provides all professional services, facilities, vehicles, and merchandise related to funerals and cremations. Cemetery locations provide cemetery property, memorial markers, and graveyard services to customers. Service Corp. derives the majority of its revenue from its funeral locations, while the cemetery division also generates a significant amount of the company's total income. Geographically, the company gets a major share of revenue from the United States.
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