What is JPMorgan European Growth &ome 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.
* 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 JPMorgan European Growth &ome's Sloan Ratio %
For the Asset Management subindustry, JPMorgan European Growth &ome'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.
JPMorgan European Growth &ome's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, JPMorgan European Growth &ome's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where JPMorgan European Growth &ome's Sloan Ratio % falls into.
JPMorgan European Growth &ome 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.
JPMorgan European Growth &ome's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 77.011 (Mar. 2024 ) + -5.717 (Sep. 2024 ) = £71.29 Mil.
JPMorgan European Growth &ome's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 2.104 (Mar. 2024 ) + 9.413 (Sep. 2024 ) = £11.52 Mil.
JPMorgan European Growth &ome's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0.632 (Mar. 2024 ) + 1.046 (Sep. 2024 ) = £1.68 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.
JPMorgan European Growth &ome (LSE:JEGI) 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 Sep. 2024, JPMorgan European Growth &ome has a Sloan Ratio of 10.79%, indicating there is a warning stage of accrual build up.
JPMorgan European Growth &ome Sloan Ratio % Related Terms
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JPMorgan European Growth &ome Business Description
JPMorgan European Growth & Income PLC is a trust that invests in a region of well governed companies which is managed by experienced fund managers with a successful European stock picking track record aiming to outperform in different economic, market and style environments. Its investment objective is that it aims o provide capital growth and a rising share price over the longer term from Continental European investments by taking carefully controlled risks through an investment method that is clearly communicated to shareholders. Currency exposure is predominantly hedged back towards the benchmark.
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