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.
Globe Life's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.48%.
As of Dec. 2023, Globe Life has a Sloan Ratio of 1.48%, indicating the company is in the safe zone and there is no funny business with accruals.
Globe Life Sloan Ratio % Historical Data
The historical data trend for Globe Life'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 Globe Life's Sloan Ratio %
For the Insurance - Life subindustry, Globe Life'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.
Globe Life's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Globe Life's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Globe Life's Sloan Ratio % falls into.
Globe Life 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.
Globe Life's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Globe Life's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 223.61 (Mar. 2023 ) + 215.26 (Jun. 2023 ) + 257.083 (Sep. 2023 ) + 274.802 (Dec. 2023 ) = $971 Mil.
Globe Life's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 477.33 (Mar. 2023 ) + 326.811 (Jun. 2023 ) + 286.887 (Sep. 2023 ) + 391.397 (Dec. 2023 ) = $1,482 Mil.
Globe Life's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -247.77 (Mar. 2023 ) + -162.367 (Jun. 2023 ) + -417.835 (Sep. 2023 ) + -98.177 (Dec. 2023 ) = $-926 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.
Globe Life (NYSE:GL) 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 Dec. 2023, Globe Life has a Sloan Ratio of 1.48%, indicating the company is in the safe zone and there is no funny business with accruals.
Globe Life Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Globe Life's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Globe Life Inc is an insurance holding company. It provides a variety of life and supplemental health insurance products and annuities to a broad base of customers. The company's core operations are organized into four reportable segments: life insurance, supplemental health insurance, annuities, and investments. Investment activities, conducted by the investment segment, focus on seeking investments with a yield and term appropriate to support the insurance product obligations. These investments generally consist of fixed maturities and, over the long term, the expected yields are considered when setting insurance premium rates and product profitability expectations.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
GL has been successfully added to your 