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.
Research Solutions's Sloan Ratio for the quarter that ended in Dec. 2023 was 19.63%.
As of Dec. 2023, Research Solutions has a Sloan Ratio of 19.63%, indicating there is a warning stage of accrual build up.
Research Solutions Sloan Ratio % Historical Data
The historical data trend for Research Solutions'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 Research Solutions's Sloan Ratio %
For the Software - Application subindustry, Research Solutions'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.
Research Solutions's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Research Solutions's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Research Solutions's Sloan Ratio % falls into.
Research Solutions 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.
Research Solutions's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
Research Solutions's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.237 (Mar. 2023 ) + 0.376 (Jun. 2023 ) + -0.988 (Sep. 2023 ) + -0.054 (Dec. 2023 ) = $-0.43 Mil.
Research Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0.849 (Mar. 2023 ) + 1.511 (Jun. 2023 ) + -0.756 (Sep. 2023 ) + 0.329 (Dec. 2023 ) = $1.93 Mil.
Research Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.011 (Mar. 2023 ) + -0.017 (Jun. 2023 ) + -2.752 (Sep. 2023 ) + -7.327 (Dec. 2023 ) = $-10.11 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.
Research Solutions (NAS:RSSS) 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, Research Solutions has a Sloan Ratio of 19.63%, indicating there is a warning stage of accrual build up.
Research Solutions Sloan Ratio % Related Terms
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Research Solutions (Research Solutions) Business Description
Research Solutions Inc is a holding company. The company provides a cloud-based SaaS research intelligence platform consisting of proprietary software and Internet-based interfaces. Its platform also allows customers to find and download digital versions of STM articles. Platforms and Transactions are packaged as a single solution that enables life science and other research-intensive organizations to speed up research and development activities. The company platform allows customers to initiate orders, manage transactions, automate authentication, obtain reports, and connect seamlessly to corporate intranets.
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