What is RedFish LongTerm Capital SpA 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 RedFish LongTerm Capital SpA's Sloan Ratio %
For the Asset Management subindustry, RedFish LongTerm Capital SpA'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.
RedFish LongTerm Capital SpA's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, RedFish LongTerm Capital SpA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where RedFish LongTerm Capital SpA's Sloan Ratio % falls into.
RedFish LongTerm Capital SpA 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.
RedFish LongTerm Capital SpA's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -1.118 (Dec. 2023 ) + -1.769 (Jun. 2024 ) = €-2.89 Mil.
RedFish LongTerm Capital SpA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 1.739 (Dec. 2023 ) + -9.053 (Jun. 2024 ) = €-7.31 Mil.
RedFish LongTerm Capital SpA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -7.365 (Dec. 2023 ) + -42.648 (Jun. 2024 ) = €-50.01 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.
RedFish LongTerm Capital SpA (MIL:RFLTC) 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 Jun. 2024, RedFish LongTerm Capital SpA has a Sloan Ratio of 43.88%, indicating earnings are more likely to be made up of accruals.
RedFish LongTerm Capital SpA Sloan Ratio % Related Terms
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RedFish LongTerm Capital SpA is an industrial holding company specializing in the acquisition of shares in family-run Italian SMEs. The company acquires qualified minority or majority shareholdings with the intention of maintaining these investments over a long period of time, either through its investment or through club deal structures, with the involvement of other investors. The role of the company in the ecosystem of its subsidiaries is to support them in increasing some critical areas by providing them with support services to managers for the financial side, management control and debt optimization, but above all advisory services for the acquisition of Target Companies in order to pursue the development plan for external lines.
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