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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.
African Dawn Capital's Sloan Ratio for the quarter that ended in Aug. 2024 was -77.10%.
As of Aug. 2024, African Dawn Capital has a Sloan Ratio of -77.10%, indicating earnings are more likely to be made up of accruals.
African Dawn Capital (JSE:ADW) 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 Aug. 2024, African Dawn Capital has a Sloan Ratio of -77.10%, indicating earnings are more likely to be made up of accruals.
African Dawn Capital Sloan Ratio % Related Terms
African Dawn Capital Sloan Ratio % Historical Data
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The historical data trend for African Dawn Capital'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.
For the Credit Services subindustry, African Dawn Capital'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.
African Dawn Capital Sloan Ratio % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, African Dawn Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where African Dawn Capital's Sloan Ratio % falls into.
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.
African Dawn Capital's Sloan Ratio for the fiscal year that ended in Feb. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
African Dawn Capital's Net Income for the trailing twelve months (TTM) ended in Aug. 2024 was -6.465 (Feb. 2024 ) + -8.78 (Aug. 2024 ) = R-15.25 Mil.
African Dawn Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2024 was -1.914 (Feb. 2024 ) + -5.525 (Aug. 2024 ) = R-7.44 Mil.
African Dawn Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2024 was -0.089 (Feb. 2024 ) + 0.411 (Aug. 2024 ) = R0.32 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.
African Dawn Capital (JSE:ADW) has a Sloan Ratio % of -77.10% as of Aug. 2024. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on African Dawn Capital and its competitors.
Is African Dawn Capital's Sloan Ratio % too high?
African Dawn Capital's current Sloan Ratio % is -77.10%. Overall, African Dawn Capital has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does African Dawn Capital's Sloan Ratio % compare to V and MA?
African Dawn Capital's Sloan Ratio % of -77.10% can be compared against companies in the Credit Services industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Credit Services company?
A good Sloan Ratio % depends on the Credit Services industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on African Dawn Capital and its competitors. African Dawn Capital's current Sloan Ratio % is -77.10%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African Dawn Capital stock overvalued right now?
African Dawn Capital (JSE:ADW) has a current Sloan Ratio % of -77.10%. The current Sloan Ratio % is -77.10%. African Dawn Capital's overall GF Score™ is 11/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For African Dawn Capital (JSE:ADW), the current Sloan Ratio % is -77.10% as of Aug. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
African Dawn Capital Ltd operates as a microfinance company. The company's operating segment includes Investment advisory and investment management, Microfinance, and Head Office segment. It generates maximum revenue from the Microfinance segment. Geographically, the company operates only in South Africa.
11GF Score
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