What is Universal Technical Institute Sloan Ratio %?
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, Universal Technical Institute has a Sloan Ratio of -1.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Universal Technical Institute 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 Universal Technical Institute's Sloan Ratio %
For the Education & Training Services subindustry, Universal Technical Institute'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.
Universal Technical Institute's Sloan Ratio % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Universal Technical Institute's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Universal Technical Institute's Sloan Ratio % falls into.
Universal Technical Institute 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.
Universal Technical Institute's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -0.509 (Jun. 2023 ) + 6.703 (Sep. 2023 ) + 10.389 (Dec. 2023 ) + 7.787 (Mar. 2024 ) = $24.4 Mil.
Universal Technical Institute's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -0.418 (Jun. 2023 ) + 53.881 (Sep. 2023 ) + 10.836 (Dec. 2023 ) + -2.491 (Mar. 2024 ) = $61.8 Mil.
Universal Technical Institute's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -9.614 (Jun. 2023 ) + -7.838 (Sep. 2023 ) + -3.848 (Dec. 2023 ) + -5.911 (Mar. 2024 ) = $-27.2 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.
Universal Technical Institute (NYSE:UTI) 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, Universal Technical Institute has a Sloan Ratio of -1.46%, indicating the company is in the safe zone and there is no funny business with accruals.
Universal Technical Institute Sloan Ratio % Related Terms
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Universal Technical Institute (Universal Technical Institute) Business Description
Universal Technical Institute Inc is an educational institution. It provides undergraduate degree, as well as certificate programs for technicians in the automotive, diesel, collision repair, motorcycle and marine fields. The company's reportable segment includes Universal Technical Institute (UTI) and Concorde Career Colleges. Majority of the revenue is generated from UTI segment which provides different kinds of degree and non-degree transportation and skilled trades technical training programs under brands such as Universal Technical Institute, Motorcycle Mechanics Institute, Marine Mechanics Institute and others. It also provides dealer technician training or instructor staffing services to manufacturers.
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