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.
Amlin's Sloan Ratio for the quarter that ended in Jun. 2015 was 0.33%.
As of Jun. 2015, Amlin has a Sloan Ratio of 0.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Amlin Sloan Ratio % Historical Data
The historical data trend for Amlin'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.
For the Insurance - Property & Casualty subindustry, Amlin'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.
Amlin's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Amlin's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Amlin's Sloan Ratio % falls into.
Amlin 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.
Amlin's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Amlin's Net Income for the trailing twelve months (TTM) ended in Jun. 2015 was 157.121 (Dec. 2014 ) + 207.165 (Jun. 2015 ) = $364 Mil.
Amlin's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2015 was 128.169 (Dec. 2014 ) + 256.231 (Jun. 2015 ) = $384 Mil.
Amlin's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2015 was -19.562 (Dec. 2014 ) + -38.162 (Jun. 2015 ) = $-58 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.
Amlin (OTCPK:APLCF) 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. 2015, Amlin has a Sloan Ratio of 0.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Amlin Sloan Ratio % Related Terms
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Amlin PLC was incorporated on September 17, 1993. The Company is engaged in non-life insurance and reinsurance underwriting in the Lloyd's market, Bermuda and Continental Europe. It specialises in providing insurance cover to commercial enterprises and reinsurance protection to other insurance companies around the world. The group operates six segments through: Amlin London, consisting of the Reinsurance, Property & Casualty, Marine and Aviation business units, underwritten via Syndicate 2001; Amlin UK, underwriting commercial insurance in the UK domestic market, via Syndicate 2001 and Amlin Insurance (UK) Limited; Amlin Bermuda, which writes predominantly property reinsurance business, via Amlin AG, including reinsurance ceded by Syndicate 2001; Amlin Re Europe, which writes Continental European non-life reinsurance business, via Amlin AG; Amlin Europe, including Amlin Europe N.V., a provider of marine, corporate property and casualty insurance in the Netherlands and Belgium and specialty business in France; and Other corporate companies, comprising all other entities of the Group including holding companies.
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