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.
Civitas Solutions's Sloan Ratio for the quarter that ended in Dec. 2018 was -2.85%.
As of Dec. 2018, Civitas Solutions has a Sloan Ratio of -2.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Civitas Solutions Sloan Ratio % Historical Data
The historical data trend for Civitas 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 Civitas Solutions's Sloan Ratio %
For the Medical Care Facilities subindustry, Civitas 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.
Civitas Solutions's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Civitas Solutions's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Civitas Solutions's Sloan Ratio % falls into.
Civitas 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.
Civitas Solutions's Sloan Ratio for the fiscal year that ended in Sep. 2018 is calculated as
Civitas Solutions's Net Income for the trailing twelve months (TTM) ended in Dec. 2018 was -2.488 (Mar. 2018 ) + 9.585 (Jun. 2018 ) + -1.605 (Sep. 2018 ) + 6.387 (Dec. 2018 ) = $12 Mil.
Civitas Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2018 was 16.814 (Mar. 2018 ) + 41.619 (Jun. 2018 ) + 39.408 (Sep. 2018 ) + 15.726 (Dec. 2018 ) = $114 Mil.
Civitas Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2018 was -12.112 (Mar. 2018 ) + -27.057 (Jun. 2018 ) + -17.742 (Sep. 2018 ) + -13.46 (Dec. 2018 ) = $-70 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.
Civitas Solutions (NYSE:CIVI) 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. 2018, Civitas Solutions has a Sloan Ratio of -2.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Civitas Solutions Sloan Ratio % Related Terms
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Civitas Solutions (Civitas Solutions) Business Description
Civitas Solutions Inc provides health services to people with intellectual, developmental, physical, or behavioral disabilities and other special needs. Its revenue is generated exclusively in the United States. Civitas operates in two segments: human services and post-acute specialty rehabilitation services, or SRS. The human services segment contributes the vast majority of revenue and provides services to people with disabilities, at-risk youth, and the elderly. Its programs for people with intellectual or developmental disabilities provide residential support, case management, and vocational services. The SRS segment provides rehabilitation and transitional living services to people who have experienced brain or spinal injuries or other severe illnesses or injuries.
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