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.
Caledonian Holdings's Sloan Ratio for the quarter that ended in Sep. 2024 was -106.10%.
As of Sep. 2024, Caledonian Holdings has a Sloan Ratio of -106.10%, indicating there is a warning stage of accrual build up.
Caledonian Holdings Sloan Ratio % Historical Data
The historical data trend for Caledonian Holdings's Sloan Ratio % can be seen below:
* 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 Caledonian Holdings's Sloan Ratio %
For the Asset Management subindustry, Caledonian Holdings'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.
Caledonian Holdings's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Caledonian Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Caledonian Holdings's Sloan Ratio % falls into.
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.
Caledonian Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Caledonian Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -1.279 (Mar. 2024 ) + -2.736 (Sep. 2024 ) = £-4.02 Mil.
Caledonian Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -0.249 (Mar. 2024 ) + -0.183 (Sep. 2024 ) = £-0.43 Mil.
Caledonian Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0.222 (Mar. 2024 ) + 0.232 (Sep. 2024 ) = £0.45 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.
Caledonian Holdings (LSE:CHP) 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, Caledonian Holdings has a Sloan Ratio of -106.10%, indicating there is a warning stage of accrual build up.
Caledonian Holdings Sloan Ratio % Related Terms
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Caledonian Holdings PLC, formerly Vela Technologies PLC is a UK-based investment company based in London that is engaged in acquiring and consolidating holdings in small and medium-sized enterprises (SMEs), that are active in the development of emergent technologies. It operates through a single segment of Investments in the United Kingdom. It mainly focuses on investment in companies that are based in the UK or Europe with a number of opportunities to acquire interests in undervalued or pre-commercialization technologies and companies. The company seeks to deliver consistent growth, performance, and returns to shareholders by building a diverse portfolio of pre-IPO technology investments.
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