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.
As of Sep. 2021, Marlin Business Services has a Sloan Ratio of -5.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Marlin Business Services Sloan Ratio % Historical Data
* 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 Marlin Business Services's Sloan Ratio %
For the Credit Services subindustry, Marlin Business Services'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.
Marlin Business Services's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Marlin Business Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Marlin Business Services's Sloan Ratio % falls into.
Marlin Business Services 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.
Marlin Business Services's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as
Marlin Business Services's Net Income for the trailing twelve months (TTM) ended in Sep. 2021 was 15.302 (Dec. 2020 ) + 6.851 (Mar. 2021 ) + 10.256 (Jun. 2021 ) + 5.481 (Sep. 2021 ) = $37.89 Mil.
Marlin Business Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2021 was 14.952 (Dec. 2020 ) + 7.032 (Mar. 2021 ) + -13.578 (Jun. 2021 ) + 9.984 (Sep. 2021 ) = $18.39 Mil.
Marlin Business Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2021 was 29.574 (Dec. 2020 ) + 27.748 (Mar. 2021 ) + 5.338 (Jun. 2021 ) + 19.435 (Sep. 2021 ) = $82.10 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.
Marlin Business Services (NAS:MRLN) 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. 2021, Marlin Business Services has a Sloan Ratio of -5.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Marlin Business Services Sloan Ratio % Related Terms
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Marlin Business Services (Marlin Business Services) Business Description
Marlin Business Services Corp is a provider of credit products and services to small businesses. The company provide equipment financing programs to manufacturers, distributors and dealers to help increase their sales and meet the needs of their small business customers. Marlin derives its revenue from interest and fees from leases and loans and, to a lesser extent, income from its property insurance program and other fee income.
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