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. 2023, BBGI Global Infrastructure has a Sloan Ratio of -4.53%, indicating the company is in the safe zone and there is no funny business with accruals.
BBGI Global Infrastructure 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 BBGI Global Infrastructure's Sloan Ratio %
For the Asset Management subindustry, BBGI Global Infrastructure'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.
BBGI Global Infrastructure's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, BBGI Global Infrastructure's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where BBGI Global Infrastructure's Sloan Ratio % falls into.
BBGI Global Infrastructure 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 company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
BBGI Global Infrastructure's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 11.063 (Jun. 2023 ) + 29.224 (Dec. 2023 ) = £40.29 Mil.
BBGI Global Infrastructure's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -11.683 (Jun. 2023 ) + -7.669 (Dec. 2023 ) = £-19.35 Mil.
BBGI Global Infrastructure's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 53.881 (Jun. 2023 ) + 53.941 (Dec. 2023 ) = £107.82 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.
BBGI Global Infrastructure (LSE:BBGI) 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, BBGI Global Infrastructure has a Sloan Ratio of -4.53%, indicating the company is in the safe zone and there is no funny business with accruals.
BBGI Global Infrastructure Sloan Ratio % Related Terms
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BBGI Global Infrastructure (LSE:BBGI) Business Description
BBGI Global Infrastructure SA is an infrastructure investment company. The company invests in a diversified portfolio of infrastructure assets, including public-private partnerships, private finance initiatives, and construction assets in the transport, healthcare, education, justice, and other services sectors across the UK, North America, Australia, Continental Europe and Holding Activities. The group invests in projects whose revenue comes from the public sector or government and non-governmental organizations which carry appropriate credit risk. The firm's main source of revenue is income from investments.
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