What is Consumer Portfolio Services 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 Dec. 2023, Consumer Portfolio Services has a Sloan Ratio of 5.75%, indicating the company is in the safe zone and there is no funny business with accruals.
Consumer Portfolio Services 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 Consumer Portfolio Services's Sloan Ratio %
For the Credit Services subindustry, Consumer Portfolio Services'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.
Consumer Portfolio Services's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Consumer Portfolio Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Consumer Portfolio Services's Sloan Ratio % falls into.
Consumer Portfolio Services 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.
Consumer Portfolio Services's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 13.823 (Mar. 2023 ) + 13.954 (Jun. 2023 ) + 10.379 (Sep. 2023 ) + 7.187 (Dec. 2023 ) = $45.3 Mil.
Consumer Portfolio Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 65.141 (Mar. 2023 ) + 55.52 (Jun. 2023 ) + 61.257 (Sep. 2023 ) + 56.062 (Dec. 2023 ) = $238.0 Mil.
Consumer Portfolio Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -121.159 (Mar. 2023 ) + -71.9 (Jun. 2023 ) + -82.693 (Sep. 2023 ) + -83.78 (Dec. 2023 ) = $-359.5 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.
Consumer Portfolio Services (NAS:CPSS) 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, Consumer Portfolio Services has a Sloan Ratio of 5.75%, indicating the company is in the safe zone and there is no funny business with accruals.
Consumer Portfolio Services Sloan Ratio % Related Terms
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Consumer Portfolio Services (Consumer Portfolio Services) Business Description
Consumer Portfolio Services Inc is a U.S based company operating in the specialty finance sector. Its business is to purchase and service retail automobile contracts originated primarily by franchised automobile dealers and, to a lesser extent, by select independent dealers in the U.S. in the sale of new and used automobiles, light trucks and passenger vans. Through its automobile contract purchases, the company provides indirect financing to the customers of dealers having limited credit histories, low incomes or past credit problems, who it refers to as sub-prime customers. It serves as an alternative source of financing for dealers, facilitating sales to customers.
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