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.
AAVAS Financiers's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, AAVAS Financiers has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
AAVAS Financiers Sloan Ratio % Historical Data
The historical data trend for AAVAS Financiers'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 AAVAS Financiers's Sloan Ratio %
For the Mortgage Finance subindustry, AAVAS Financiers'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.
AAVAS Financiers's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, AAVAS Financiers's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where AAVAS Financiers's Sloan Ratio % falls into.
AAVAS Financiers 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.
AAVAS Financiers's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
AAVAS Financiers's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1098.285 (Jun. 2023 ) + 1216.618 (Sep. 2023 ) + 1167.232 (Dec. 2023 ) + 1424.809 (Mar. 2024 ) = ₹4,907 Mil.
AAVAS Financiers's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹0 Mil.
AAVAS Financiers's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹0 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.
AAVAS Financiers (NSE:AAVAS) 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 Mar. 2024, AAVAS Financiers has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
AAVAS Financiers Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of AAVAS Financiers's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
AAVAS Financiers Ltd is a housing finance company. The company provides housing loans to customers belonging to the low and middle-income and self-employed segments in suburban and rural India. Its only operating segment is Lending to borrowers. The company's product portfolio includes home loans, land purchases and construction, home improvement loans, home equity, micro, small, and medium enterprise loan, and others. It offers customers loans for the purchase or construction of residential properties and the extension and repair of existing housing units.
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