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 Jun. 2024, Grupo Catalana Occidente has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Grupo Catalana Occidente 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 Grupo Catalana Occidente's Sloan Ratio %
For the Insurance - Diversified subindustry, Grupo Catalana Occidente'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.
Grupo Catalana Occidente's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Grupo Catalana Occidente's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Grupo Catalana Occidente's Sloan Ratio % falls into.
Grupo Catalana Occidente 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.
Grupo Catalana Occidente's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Grupo Catalana Occidente's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 228.007 (Jun. 2023 ) + 100.393 (Sep. 2023 ) + 110.098 (Dec. 2023 ) + 0 (Jun. 2024 ) = €438 Mil.
Grupo Catalana Occidente's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Jun. 2024 ) = €0 Mil.
Grupo Catalana Occidente's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Jun. 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.
Grupo Catalana Occidente (FRA:OCZA) 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. 2024, Grupo Catalana Occidente has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Grupo Catalana Occidente Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Grupo Catalana Occidente's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Grupo Catalana Occidente SA is a property and casualty company that operates in the insurance market, as well as the credit insurance market. It generates a majority of its revenue from Spain and other European countries. The company's revenue is generally split between its traditional insurance business and its credit insurance activity. Its traditional insurance business includes residential, commercial, auto, and life insurance products. Grupo's credit insurance business protects companies from the default risk associated with selling products and services on credit.
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