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 Dec. 2016, Aberforth Gearedome Trust has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Aberforth Gearedome Trust 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 Aberforth Gearedome Trust's Sloan Ratio %
For the Asset Management subindustry, Aberforth Gearedome Trust'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.
Aberforth Gearedome Trust's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Aberforth Gearedome Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aberforth Gearedome Trust's Sloan Ratio % falls into.
Aberforth Gearedome Trust 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.
Aberforth Gearedome Trust's Sloan Ratio for the fiscal year that ended in Jun. 2016 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Aberforth Gearedome Trust's Net Income for the trailing twelve months (TTM) ended in Dec. 2016 was -33.744 (Jun. 2016 ) + 50.758 (Dec. 2016 ) = £17.01 Mil.
Aberforth Gearedome Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 1.552 (Jun. 2016 ) + 13.21 (Dec. 2016 ) = £14.76 Mil.
Aberforth Gearedome Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2016 was 0 (Jun. 2016 ) + 0 (Dec. 2016 ) = £0.00 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.
Aberforth Gearedome Trust (LSE:AGIZ.PFD) 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. 2016, Aberforth Gearedome Trust has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Aberforth Gearedome Trust Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Aberforth Gearedome Trust's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aberforth Geared Income Trust PLC is the United Kingdom based split capital investment trust which is managed by Aberforth Partners LLP. It has two classes of shares; Ordinary Shares and Zero Dividend Preference Shares. The Trust invests in a diversified portfolio of small the United Kingdom quoted companies listed on the London Stock Exchange, thereby proving its ordinary shareholders with the potential for high income and capital growth. Its zero dividend preference shareholders are provided pre-determined final capital. Aberforth invests across various sectors, including oil and gas, chemicals, mining, construction and materials, aerospace and defense, general industrials, electronic and electrical equipment, and industrial transportation.
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