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.
Rothschild SCA's Sloan Ratio for the quarter that ended in Jun. 2023 was 2.44%.
As of Jun. 2023, Rothschild SCA has a Sloan Ratio of 2.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Rothschild SCA Sloan Ratio % Historical Data
The historical data trend for Rothschild SCA'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 Rothschild SCA's Sloan Ratio %
For the Capital Markets subindustry, Rothschild SCA'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.
Rothschild SCA's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Rothschild SCA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rothschild SCA's Sloan Ratio % falls into.
Rothschild SCA 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.
Rothschild SCA's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Rothschild SCA's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was 356.835 (Dec. 2022 ) + 128.474 (Jun. 2023 ) = €485 Mil.
Rothschild SCA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was -2619.688 (Dec. 2022 ) + 2532.049 (Jun. 2023 ) = €-88 Mil.
Rothschild SCA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was 30.27 (Dec. 2022 ) + 108.121 (Jun. 2023 ) = €138 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.
Rothschild SCA (CHIX:ROTHp) 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. 2023, Rothschild SCA has a Sloan Ratio of 2.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Rothschild SCA Sloan Ratio % Related Terms
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Rothschild & Co SCA is a financial advisory group that provides merger and acquisition, strategy and financing advice, as well as investment and wealth management solutions to large institutions, families, individuals, and governments globally. The company operates through three divisions: Rothschild Global Advisory, which offers merger and acquisition, strategy, and financing solutions to clients; Rothschild Private Wealth & Rothschild Asset Management, which provides investing, structuring, and safeguarding solutions; and Rothschild Merchant Banking, which is engaged in corporate private equity, managed funds, direct lending, and credit management. Its geographical segments are France, United Kingdom & Channel Islands, Americas, Rest of Europe, Switzerland, Australia & Asia, and others.
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