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.
As of Mar. 2024, Peoples Leasing & Finance has a Sloan Ratio of -7.17%, indicating the company is in the safe zone and there is no funny business with accruals.
Peoples Leasing & Finance Sloan Ratio % Historical Data
* 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 Peoples Leasing & Finance's Sloan Ratio %
For the Credit Services subindustry, Peoples Leasing & Finance'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.
Peoples Leasing & Finance's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Peoples Leasing & Finance's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Peoples Leasing & Finance's Sloan Ratio % falls into.
Peoples Leasing & Finance 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.
Peoples Leasing & Finance's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Peoples Leasing & Finance's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 498 (Jun. 2023 ) + 1018 (Sep. 2023 ) + 840 (Dec. 2023 ) + 1637.917 (Mar. 2024 ) = රු3,994 Mil.
Peoples Leasing & Finance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 8827 (Jun. 2023 ) + 1341 (Sep. 2023 ) + -1445 (Dec. 2023 ) + 8567.162 (Mar. 2024 ) = රු17,290 Mil.
Peoples Leasing & Finance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 80 (Jun. 2023 ) + -55 (Sep. 2023 ) + 26 (Dec. 2023 ) + -65.941 (Mar. 2024 ) = රු-15 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.
Peoples Leasing & Finance (COL:PLC.N0000) 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, Peoples Leasing & Finance has a Sloan Ratio of -7.17%, indicating the company is in the safe zone and there is no funny business with accruals.
Peoples Leasing & Finance Sloan Ratio % Related Terms
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Peoples Leasing & Finance (COL:PLC.N0000) Business Description
Peoples Leasing & Finance PLC provides financial service. The company's operating segment include Lease and hire purchase; Loans; Islamic; Insurance business and Other business. It generates maximum revenue from the Lease and hire purchase segment. The company product portfolio mainly comprises finance leases, loans, deposits (fixed and saving deposits), Islamic products and factoring, as well as margin trading facilities and others.
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