What is Aberdeen Latin America Equity Fund 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.
When Sloan Ratio (25.01)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2017, Aberdeen Latin America Equity Fund has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Aberdeen Latin America Equity Fund 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.
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Aberdeen Latin America Equity Fund Sloan Ratio % Chart
Competitive Comparison of Aberdeen Latin America Equity Fund's Sloan Ratio %
For the Asset Management subindustry, Aberdeen Latin America Equity Fund'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.
Aberdeen Latin America Equity Fund's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Aberdeen Latin America Equity Fund's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aberdeen Latin America Equity Fund's Sloan Ratio % falls into.
Aberdeen Latin America Equity Fund 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.
* 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.
Aberdeen Latin America Equity Fund (AMEX:LAQ) 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. 2017, Aberdeen Latin America Equity Fund has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Aberdeen Latin America Equity Fund Sloan Ratio % Related Terms
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Aberdeen Latin America Equity Fund (Aberdeen Latin America Equity Fund) Business Description
Aberdeen Latin America Equity Fund Inc is a closed-end investment company. Its investment objective is to seek long-term capital appreciation by investing in Latin American equity securities. The fund invests in various sectors, including financials, consumer staples, industrials, materials, consumer discretionary, energy, information technology, healthcare, utilities and private equity, short-term investments and other assets. It invests in various geographical locations, including Brazil, Mexico, Chile, Argentina, Colombia, the United States and Peru. Aberdeen Asset Managers Limited serves as the fund's investment adviser with respect to all investments. Aberdeen Asset Managers Limited is a direct wholly-owned subsidiary of Aberdeen Asset Management PLC.
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