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.
FE Investments Group's Sloan Ratio for the quarter that ended in Sep. 2019 was 0.20%.
As of Sep. 2019, FE Investments Group has a Sloan Ratio of 0.20%, indicating the company is in the safe zone and there is no funny business with accruals.
FE Investments Group Sloan Ratio % Historical Data
The historical data trend for FE Investments 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 FE Investments Group's Sloan Ratio %
For the Credit Services subindustry, FE Investments 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.
FE Investments Group's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, FE Investments Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where FE Investments Group's Sloan Ratio % falls into.
FE Investments 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.
FE Investments Group's Sloan Ratio for the fiscal year that ended in Mar. 2018 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
FE Investments Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2019 was 1.308 (Mar. 2019 ) + -0.647 (Sep. 2019 ) = A$0.66 Mil.
FE Investments Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2019 was 1.924 (Mar. 2019 ) + -1.291 (Sep. 2019 ) = A$0.63 Mil.
FE Investments Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2019 was -0.081 (Mar. 2019 ) + -0.047 (Sep. 2019 ) = A$-0.13 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.
FE Investments Group (ASX:FEI) 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 Sep. 2019, FE Investments Group has a Sloan Ratio of 0.20%, indicating the company is in the safe zone and there is no funny business with accruals.
FE Investments Group Sloan Ratio % Related Terms
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FE Investments Group (ASX:FEI) Business Description
FE Investments Group Ltd a financial services company. It is operating as a non-bank deposit taker with deposit-taking licence issued by the reserve bank of New Zealand. It is organized into two reporting segments, being Lending Products and Leasing. The Lending Products segment. The company's focus is the leasing of business equipment and technology products for the SME market. The company accepts deposits from the New Zealand public and lends to the SME sector in New Zealand and Australia. It provides financing facilities in the form of lease financing, term loans, working capital facilities, stock funding, trade finance and business micro-loans. Approximately, 98% of the company's revenue is generated in New Zealand.
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