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.
Unum Group's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.28%.
As of Dec. 2023, Unum Group has a Sloan Ratio of 1.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Unum Group Sloan Ratio % Historical Data
The historical data trend for Unum Group'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 Unum Group's Sloan Ratio %
For the Insurance - Life subindustry, Unum Group'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.
Unum Group's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Unum Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Unum Group's Sloan Ratio % falls into.
Unum Group 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.
Unum Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Unum Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 358.3 (Mar. 2023 ) + 392.9 (Jun. 2023 ) + 202 (Sep. 2023 ) + 330.6 (Dec. 2023 ) = $1,284 Mil.
Unum Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 150.6 (Mar. 2023 ) + 313.6 (Jun. 2023 ) + 395.1 (Sep. 2023 ) + 343.5 (Dec. 2023 ) = $1,203 Mil.
Unum Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -40.5 (Mar. 2023 ) + -232.7 (Jun. 2023 ) + -225.4 (Sep. 2023 ) + -227.3 (Dec. 2023 ) = $-726 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.
Unum Group (NYSE:UNM) 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, Unum Group has a Sloan Ratio of 1.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Unum Group Sloan Ratio % Related Terms
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Unum Group is a provider of group and individual income protection insurance products in the United States, the United Kingdom, Poland, and other countries. It is the largest domestic disability insurer, with the majority of premiums generated from employer plans. The company also offers a complementary portfolio of other insurance products, including long-term care insurance, life insurance, and employer- and employee-paid group benefits. It has the following operating business segments: Unum US, Unum International, and Colonial Life. The majority of the revenue is earned from the Unum US segment. The firm markets its products primarily through brokers.
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