What is Albion Venture Capital Trust 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 Sep. 2023, Albion Venture Capital Trust has a Sloan Ratio of 2.75%, indicating the company is in the safe zone and there is no funny business with accruals.
Albion Venture Capital Trust 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 Albion Venture Capital Trust's Sloan Ratio %
For the Asset Management subindustry, Albion Venture Capital Trust'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.
Albion Venture Capital Trust's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Albion Venture Capital Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Albion Venture Capital Trust's Sloan Ratio % falls into.
Albion Venture Capital Trust 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Albion Venture Capital Trust's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -0.885 (Mar. 2023 ) + -3.004 (Sep. 2023 ) = £-3.89 Mil.
Albion Venture Capital Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -0.19 (Mar. 2023 ) + -0.129 (Sep. 2023 ) = £-0.32 Mil.
Albion Venture Capital Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -3.165 (Mar. 2023 ) + -2.244 (Sep. 2023 ) = £-5.41 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.
Albion Venture Capital Trust (LSE:AAVC) 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 Sep. 2023, Albion Venture Capital Trust has a Sloan Ratio of 2.75%, indicating the company is in the safe zone and there is no funny business with accruals.
Albion Venture Capital Trust Sloan Ratio % Related Terms
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Albion Venture Capital Trust (LSE:AAVC) Business Description
Albion Venture Capital Trust PLC is a UK-based venture capital trust. The principal activity of the company is to select and hold a portfolio of investments in unquoted securities. Its investment objectives are to manage the risk normally associated with investments in smaller unquoted companies while maintaining an attractive yield, by allowing investors to participate in a balanced portfolio of asset-backed businesses. The firm invests in various sectors, including healthcare, renewable energy, education, Business services, Growth and technology, Cash and cash equivalents, and Hotels. Its investments are normally structured as a mixture of equity and loan stock. Loan stock represents the majority of the finance provided and is secured on the assets of the portfolio company.
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