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.
AGBA Group Holding's Sloan Ratio for the quarter that ended in Jun. 2024 was -19.73%.
Warning Sign:
When sloan ratio (-26.6)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2024, AGBA Group Holding has a Sloan Ratio of -19.73%, indicating earnings are more likely to be made up of accruals.
AGBA Group Holding Sloan Ratio % Historical Data
The historical data trend for AGBA Group Holding'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 AGBA Group Holding's Sloan Ratio %
For the Asset Management subindustry, AGBA Group Holding'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.
AGBA Group Holding's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, AGBA Group Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where AGBA Group Holding's Sloan Ratio % falls into.
AGBA Group Holding 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.
AGBA Group Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
AGBA Group Holding's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -12.921 (Sep. 2023 ) + -13.627 (Dec. 2023 ) + -8.06 (Mar. 2024 ) + -11.37 (Jun. 2024 ) = $-45.98 Mil.
AGBA Group Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was -14.099 (Sep. 2023 ) + -8.917 (Dec. 2023 ) + -6.857 (Mar. 2024 ) + -7.39 (Jun. 2024 ) = $-37.26 Mil.
AGBA Group Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 0.21 (Sep. 2023 ) + 6.105 (Dec. 2023 ) + 2.168 (Mar. 2024 ) + 0.412 (Jun. 2024 ) = $8.90 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.
AGBA Group Holding (NAS:AGBA) 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. 2024, AGBA Group Holding has a Sloan Ratio of -19.73%, indicating earnings are more likely to be made up of accruals.
AGBA Group Holding Sloan Ratio % Related Terms
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AGBA Group Holding Ltd provides healthcare, wellness, financial advisory, and fintech services. The group is organized into four divisions: Platform, Distribution, Healthcare, and Fintech. The AGBA platform helps individual and corporate customers with financial, medical, and healthcare service options. The AGBA is an omnichannel one-stop financial business solution platform that offers financial services, expands business opportunities, and enhances business productivity to licensed financial advisors, licensed brokers, and licensed financial institutions.
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