Time Finance (LSE:TIME) Sloan Ratio % : 2.20% (As of Nov. 2023)

Time Finance Sloan Ratio % Chart

Time Finance Annual Data
	Trend	May14	May15	May16	May17	May18	May19	May20	May21	May22	May23
Sloan Ratio %		Get a 7-Day Free Trial					3.83	-0.22	-2.45	3.06	0.62

Time Finance Semi-Annual Data
	May14	Nov14	May15	Nov15	May16	Nov16	May17	Nov17	May18	Nov18	May19	Nov19	May20	Nov20	May21	Nov21	May22	Nov22	May23	Nov23
Sloan Ratio %	Get a 7-Day Free Trial															-0.60	3.06	1.39	0.62	2.20

Competitive Comparison of Time Finance's Sloan Ratio %

For the Credit Services subindustry, Time Finance'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.

Time Finance's Sloan Ratio % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, Time Finance's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Time Finance's Sloan Ratio % falls into.

Time Finance 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.

Time Finance's Sloan Ratio for the fiscal year that ended in May. 2023 is calculated as

Time Finance's Sloan Ratio for the quarter that ended in Nov. 2023 is calculated as

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Time Finance's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was 1.851 (May. 2023 ) + 2.156 (Nov. 2023 ) = £4.01 Mil.
Time Finance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was 1.343 (May. 2023 ) + -1.359 (Nov. 2023 ) = £-0.02 Mil.
Time Finance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was -0.098 (May. 2023 ) + -0.101 (Nov. 2023 ) = £-0.20 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.

Time Finance  (LSE:TIME) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Time Finance has a Sloan Ratio of 2.20%, indicating the company is in the safe zone and there is no funny business with accruals.

Time Finance Sloan Ratio % Related Terms

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Time Finance (LSE:TIME) Business Description