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 Mavenome and Growth VCT 3's Sloan Ratio %
For the Asset Management subindustry, Mavenome and Growth VCT 3'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.
Mavenome and Growth VCT 3's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Mavenome and Growth VCT 3's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mavenome and Growth VCT 3's Sloan Ratio % falls into.
Mavenome and Growth VCT 3 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.
Mavenome and Growth VCT 3's Sloan Ratio for the fiscal year that ended in Nov. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Mavenome and Growth VCT 3's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was -2.101 (May. 2023 ) + -0.714 (Nov. 2023 ) = £-2.82 Mil.
Mavenome and Growth VCT 3's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was -0.556 (May. 2023 ) + -0.367 (Nov. 2023 ) = £-0.92 Mil.
Mavenome and Growth VCT 3's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was -12.399 (May. 2023 ) + -4.138 (Nov. 2023 ) = £-16.54 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.
Mavenome and Growth VCT 3 (LSE:MIG3) 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 Nov. 2023, Mavenome and Growth VCT 3 has a Sloan Ratio of 24.57%, indicating there is a warning stage of accrual build up.
Mavenome and Growth VCT 3 Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Mavenome and Growth VCT 3's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Mavenome and Growth VCT 3 (LSE:MIG3) Business Description
Maven Income and Growth VCT 3 PLC is a part of the financial services sector. It operating as a venture capital trust, the company aims to achieve long-term capital growth and income for its shareholders. It follows a strategy of investing most of its funds in shares and securities of unquoted UK companies and AIM-quoted companies. The company funds portfolio includes Greater Manchester Loan Fund, Private Equity, and Property Fund.
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