Focus Financial Partners (Focus Financial Partners) Sloan Ratio % : 3.00% (As of Jun. 2023)

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What is Focus Financial Partners Sloan Ratio %?

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.

Focus Financial Partners's Sloan Ratio for the quarter that ended in Jun. 2023 was 3.00%.

As of Jun. 2023, Focus Financial Partners has a Sloan Ratio of 3.00%, indicating the company is in the safe zone and there is no funny business with accruals.

Focus Financial Partners Sloan Ratio % Historical Data

The historical data trend for Focus Financial Partners'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.

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Focus Financial Partners Sloan Ratio % Chart

Focus Financial Partners Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Sloan Ratio %

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17.54

13.14

6.19

14.95

5.72

Focus Financial Partners Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Sloan Ratio %	Get a 7-Day Free Trial															19.63	18.17	5.72	6.50	3.00

Competitive Comparison of Focus Financial Partners's Sloan Ratio %

For the Asset Management subindustry, Focus Financial Partners'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.

Focus Financial Partners's Sloan Ratio % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Focus Financial Partners's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Focus Financial Partners's Sloan Ratio % falls into.

Focus Financial Partners 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.

Focus Financial Partners's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2022 )	-	Cash Flow from Operations (A: Dec. 2022 )
	-	Cash Flow from Investing (A: Dec. 2022 ))	/	Total Assets (A: Dec. 2022 )
	=	(91.784	-	288.599
	-	-475.181)	/	4866.754
	=	5.72%

Focus Financial Partners's Sloan Ratio for the quarter that ended in Jun. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Jun. 2023 )
	=	(61.144	-	266.128
	-	-361.697)	/	5221.17
	=	3.00%

Focus Financial Partners's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was 29.249 (Sep. 2022 ) + 0.35 (Dec. 2022 ) + -0.632 (Mar. 2023 ) + 32.177 (Jun. 2023 ) = $61 Mil.
Focus Financial Partners's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 101.024 (Sep. 2022 ) + 58.283 (Dec. 2022 ) + -3.228 (Mar. 2023 ) + 110.049 (Jun. 2023 ) = $266 Mil.
Focus Financial Partners's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -116.342 (Sep. 2022 ) + -95.122 (Dec. 2022 ) + -90.317 (Mar. 2023 ) + -59.916 (Jun. 2023 ) = $-362 Mil.

Focus Financial Partners (NAS:FOCS) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Focus Financial Partners has a Sloan Ratio of 3.00%, indicating the company is in the safe zone and there is no funny business with accruals.

Focus Financial Partners Sloan Ratio % Related Terms

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Focus Financial Partners (Focus Financial Partners) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » Focus Financial Partners Inc (NAS:FOCS) » Definitions » Sloan Ratio %

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Traded in Other Exchanges

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Address

875 Third Avenue, 28th Floor, New York, NY, USA, 10022

Website

https://www.focusfinancialpartners.com

Focus Financial Partners Inc is a partnership of independent, fiduciary wealth management firms operating in the fragmented RIA industry. It provides Mergers and acquisitions expertise and other services such as Talent Management, Legal and Regulatory Support, marketing and business development. The company generates its revenue in the form of wealth management fees. Geographically, it derives a majority of revenue from the United States and also has a presence in the United Kingdom, Canada, and Australia.

Executives

George Lemieux	director	875 THIRD AVENUE, 28TH FLOOR, NEW YORK NY 10022
Elizabeth R. Neuhoff	director	146 SOTA DRIVE, JUPITER FL 33458
Kristine Mashinsky	director	875 THIRD AVENUE, 28TH FLOOR, NEW YORK NY 10022
Kkr Freya Aggregator L.p.	10 percent owner	KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019
Kkr Group Partnership L.p.	10 percent owner	C/O KOHLBERG KRAVIS ROBERTS & CO. L.P., 30 HUDSON YARDS, NEW YORK NY 10001
Stone Point Capital Llc	director, 10 percent owner	20 HORSENECK LANE, GREENWICH CT 06830
James D Carey	director	STONE POINT CAPITAL LLC, 20 HORSENECK LANE, GREENWICH CT 06830
Greg S. Morganroth	director	875 THIRD AVENUE, 28TH FLOOR, NEW YORK NY 10022
James Shanahan	officer: Chief Financial Officer	C/O FOCUS FINANCIAL PARTNERS, INC., 825 THIRD AVENUE, 27TH FLOOR, NEW YORK NY 10022
Leonard R. Chang	officer: Sr. Managing Dir./Head of M&A	875 THIRD AVENUE, 28TH FLOOR, NEW YORK NY 10022
John Russell Mcgranahan	officer: General Counsel	875 THIRD AVENUE, 28TH FLOOR, NEW YORK NY 10022
Rajini Sundar Kodialam	director, officer: Chief Operating Officer	C/O FOCUS FINANCIAL PARTNERS, INC., 825 THIRD AVENUE, 27TH FLOOR, NEW YORK NY 10022
Ruediger Adolf	director, 10 percent owner, officer: CEO and Chairman	C/O FOCUS FINANCIAL PARTNERS, INC., 825 THIRD AVENUE, 27TH FLOOR, NEW YORK NY 10022
Joseph Feliciani	director	C/O BLACKROCK FINANCIAL MANAGEMENT INC., 40 EAST 52ND STREET, NEW YORK NY 10022
Kkr Americas Xii Aiv Gp Llc	10 percent owner	KOHLBERG KRAVIS ROBERTS & CO. L.P., 9 WEST 57TH STREET, SUITE 4200, NEW YORK NY 10019