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.
Hannover Rueck SE's Sloan Ratio for the quarter that ended in Sep. 2024 was 0.98%.
As of Sep. 2024, Hannover Rueck SE has a Sloan Ratio of 0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Hannover Rueck SE Sloan Ratio % Historical Data
The historical data trend for Hannover Rueck SE'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 Hannover Rueck SE's Sloan Ratio %
For the Insurance - Reinsurance subindustry, Hannover Rueck SE'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.
Hannover Rueck SE's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Hannover Rueck SE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hannover Rueck SE's Sloan Ratio % falls into.
Hannover Rueck SE 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.
Hannover Rueck SE's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Hannover Rueck SE's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 425.4 (Dec. 2023 ) + 558.1 (Mar. 2024 ) + 603 (Jun. 2024 ) + 663.3 (Sep. 2024 ) = €2,250 Mil.
Hannover Rueck SE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 1732.8 (Dec. 2023 ) + 1051.8 (Mar. 2024 ) + 1588.7 (Jun. 2024 ) + 1645.5 (Sep. 2024 ) = €6,019 Mil.
Hannover Rueck SE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -1734.8 (Dec. 2023 ) + -778.7 (Mar. 2024 ) + -871.4 (Jun. 2024 ) + -1069.7 (Sep. 2024 ) = €-4,455 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.
Hannover Rueck SE (CHIX:HNR1d) 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. 2024, Hannover Rueck SE has a Sloan Ratio of 0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Hannover Rueck SE Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Hannover Rueck SE's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hannover Re is a reinsurance company headquartered in Hannover, Germany. Its roots go back to the 1920s when, in conjunction with the Gerling Group, Haftpflichtverband founded Eisen- und Stahl-Industrie to provide reinsurance services. In the 1960s ownership of the business was turned over to Haftpflichtverband, and Aktiengesellschaft für Transport und- Rückversicherung was founded. This was the basis of Hannover Re. The business expanded into life and health reinsurance in the 1990s, and over the next 30 years expanded beyond its core domestic market of Germany to write business internationally. Hannover sold its commercial specialty insurance business to Talanx in January 2019. Hannover was listed in the 1990s on the Frankfurt Stock Exchange.
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