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 Feb. 2023, Chelverton Growth Trust has a Sloan Ratio of -9.64%, indicating the company is in the safe zone and there is no funny business with accruals.
Chelverton Growth 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 Chelverton Growth Trust's Sloan Ratio %
For the Asset Management subindustry, Chelverton Growth 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.
Chelverton Growth Trust's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Chelverton Growth Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chelverton Growth Trust's Sloan Ratio % falls into.
Chelverton Growth 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.
Chelverton Growth Trust's Sloan Ratio for the fiscal year that ended in Aug. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Chelverton Growth Trust's Net Income for the trailing twelve months (TTM) ended in Feb. 2023 was -0.207 (Aug. 2022 ) + -0.1 (Feb. 2023 ) = £-0.31 Mil.
Chelverton Growth Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2023 was -0.037 (Aug. 2022 ) + -0.052 (Feb. 2023 ) = £-0.09 Mil.
Chelverton Growth Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2023 was 0.027 (Aug. 2022 ) + 0.055 (Feb. 2023 ) = £0.08 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.
Chelverton Growth Trust (LSE:CGW) 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 Feb. 2023, Chelverton Growth Trust has a Sloan Ratio of -9.64%, indicating the company is in the safe zone and there is no funny business with accruals.
Chelverton Growth Trust Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Chelverton Growth Trust's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chelverton Growth Trust (LSE:CGW) Business Description
Chelverton Growth Trust PLC is an investment trust. Its objective is to provide capital growth through investment in companies listed on the Official List and traded on the Alternative Investment Market with a market capitalization at the time of investment. Its investment objective is to increase net asset value per share at a higher rate than other quoted smaller company trusts and the MSCI Small Cap UK Index. It invests in securities of publicly quoted UK companies, though it might invest in unquoted securities.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LSE:CGW has been successfully added to your 