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.
Asta Funding's Sloan Ratio for the quarter that ended in Jun. 2020 was 3.16%.
As of Jun. 2020, Asta Funding has a Sloan Ratio of 3.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Asta Funding Sloan Ratio % Historical Data
The historical data trend for Asta Funding'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 Asta Funding's Sloan Ratio %
For the Credit Services subindustry, Asta Funding'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.
Asta Funding's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Asta Funding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Asta Funding's Sloan Ratio % falls into.
Asta Funding 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.
Asta Funding's Sloan Ratio for the fiscal year that ended in Sep. 2019 is calculated as
Asta Funding's Net Income for the trailing twelve months (TTM) ended in Jun. 2020 was 1.823 (Sep. 2019 ) + 1.045 (Dec. 2019 ) + -0.072 (Mar. 2020 ) + 0.446 (Jun. 2020 ) = $3.24 Mil.
Asta Funding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2020 was 5.961 (Sep. 2019 ) + 1.807 (Dec. 2019 ) + -0.26 (Mar. 2020 ) + 0.122 (Jun. 2020 ) = $7.63 Mil.
Asta Funding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2020 was -4.344 (Sep. 2019 ) + -2.898 (Dec. 2019 ) + 5.971 (Mar. 2020 ) + -6.071 (Jun. 2020 ) = $-7.34 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.
Asta Funding (NAS:ASFI) 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 Jun. 2020, Asta Funding has a Sloan Ratio of 3.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Asta Funding Sloan Ratio % Related Terms
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Asta Funding Inc is a US-based company engaged in the business of acquiring, managing, servicing and recovering on portfolios of consumer receivables. It has organized its business into three segments: Consumer Receivables, Personal Injury Claims, Social Security Disability Advocacy. Its business activity involves purchasing, managing for its own account and servicing distressed consumer receivables, including charged-off receivables, semi-performing receivables and performing receivables, purchasing interests in personal injury claims from claimants who are a party to personal injury litigation, purchasing periodic structured settlements and annuity policies from individuals in exchange for a lump sum payment.
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