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.
Main Street Capital's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, Main Street Capital has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Main Street Capital Sloan Ratio % Historical Data
The historical data trend for Main Street Capital'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 Main Street Capital's Sloan Ratio %
For the Asset Management subindustry, Main Street Capital'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.
Main Street Capital's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Main Street Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Main Street Capital's Sloan Ratio % falls into.
Main Street Capital 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.
Main Street Capital's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Main Street Capital's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 79.592 (Mar. 2023 ) + 106.516 (Jun. 2023 ) + 103.261 (Sep. 2023 ) + 139.081 (Dec. 2023 ) = $428.5 Mil.
Main Street Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 19.97 (Mar. 2023 ) + 27.712 (Jun. 2023 ) + 83.964 (Sep. 2023 ) + 153.676 (Dec. 2023 ) = $285.3 Mil.
Main Street Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = $0.0 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.
Main Street Capital (NYSE:MAIN) 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, Main Street Capital has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Main Street Capital Sloan Ratio % Related Terms
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Main Street Capital (Main Street Capital) Business Description
Main Street Capital Corp is an investment firm engaged in providing customized debt and equity financing to lower middle market companies and debt capital to middle market companies. The investment portfolio of the company is typically made to support management buyouts, recapitalizations, growth financings, refinancings, and acquisitions of companies that operate in diverse industry sectors. The group invests in secured debt investments, equity investments, warrants, and other securities of the lower middle market and middle market companies based in the US. Business functioned through the U.S. region and it derives the majority of its income from the source of fees, commission, and interest.
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