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.
Reliance Capital's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, Reliance Capital has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Reliance Capital Sloan Ratio % Historical Data
The historical data trend for Reliance 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 Reliance Capital's Sloan Ratio %
For the Financial Conglomerates subindustry, Reliance 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.
Reliance Capital's Sloan Ratio % Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Reliance Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Reliance Capital's Sloan Ratio % falls into.
Reliance 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.
Reliance Capital's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Reliance Capital's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -15025.7 (Mar. 2023 ) + -2627 (Sep. 2023 ) + 393.7 (Dec. 2023 ) + 617.5 (Mar. 2024 ) = ₹-16,642 Mil.
Reliance Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Mar. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹0 Mil.
Reliance Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Mar. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹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.
Reliance Capital (BOM:500111) 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 Mar. 2024, Reliance Capital has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Reliance Capital Sloan Ratio % Related Terms
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Reliance Capital (BOM:500111) Business Description
Reliance Capital Ltd is a member of the Reliance Group and services the financial sector. The company provides services in asset management and mutual funds, life and general insurance, commercial finance, equities and commodities broking, wealth management, and many other related services. General insurance is the company's leading revenue generator and includes auto, home, property, travel, marine, commercial, and other specialty products for individuals and companies. Its commercial finance unit is operated through a subsidiary, Reliance Commercial Finance, and participates in a range of lending activities. As one of India's leading lenders, it offers home loans, loans against property, small and medium enterprise loans, vehicle loans, and loans for construction.
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