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.
Movida Participacoes's Sloan Ratio for the quarter that ended in Dec. 2023 was -14.36%.
As of Dec. 2023, Movida Participacoes has a Sloan Ratio of -14.36%, indicating there is a warning stage of accrual build up.
Movida Participacoes Sloan Ratio % Historical Data
The historical data trend for Movida Participacoes'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 Movida Participacoes's Sloan Ratio %
For the Rental & Leasing Services subindustry, Movida Participacoes'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.
Movida Participacoes's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Movida Participacoes's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Movida Participacoes's Sloan Ratio % falls into.
Movida Participacoes 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.
Movida Participacoes's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Movida Participacoes's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 21.045 (Mar. 2023 ) + -17.864 (Jun. 2023 ) + -65.72 (Sep. 2023 ) + -588.308 (Dec. 2023 ) = R$-651 Mil.
Movida Participacoes's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 2692.158 (Mar. 2023 ) + 2036.347 (Jun. 2023 ) + 873.105 (Sep. 2023 ) + -2374.458 (Dec. 2023 ) = R$3,227 Mil.
Movida Participacoes's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2340.677 (Mar. 2023 ) + 2155.738 (Jun. 2023 ) + -52.973 (Sep. 2023 ) + -34.126 (Dec. 2023 ) = R$-272 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.
Movida Participacoes (BSP:MOVI3) 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, Movida Participacoes has a Sloan Ratio of -14.36%, indicating there is a warning stage of accrual build up.
Movida Participacoes Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Movida Participacoes's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Movida Participacoes (BSP:MOVI3) Business Description
Movida Participacoes SA through its subsidiaries is engaged in car rental activities in Brazil. The business activities of the group function through Rent a Car (RAC) and light vehicle fleet management and outsourcing segments. The Rent a car segment is responsible for car rental in stores located inside and outside airports, and Fleet Management and Outsourcing segment provides car rental services signed through long-term contracts with corporate clients. In addition, the group is also involved in the sale of used cars. Geographically activities are carried out in Brazil and the company derives revenue from rental activities.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BSP:MOVI3 has been successfully added to your 