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.
Turners Group NZ's Sloan Ratio for the quarter that ended in Jun. 2014 was 4.09%.
As of Jun. 2014, Turners Group NZ has a Sloan Ratio of 4.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Turners Group NZ Sloan Ratio % Historical Data
The historical data trend for Turners Group NZ'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 Turners Group NZ's Sloan Ratio %
For the Auto & Truck Dealerships subindustry, Turners Group NZ'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.
Turners Group NZ's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Turners Group NZ's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Turners Group NZ's Sloan Ratio % falls into.
Turners Group NZ 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.
Turners Group NZ's Sloan Ratio for the fiscal year that ended in Dec. 2013 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Turners Group NZ's Net Income for the trailing twelve months (TTM) ended in Jun. 2014 was 2.675 (Dec. 2013 ) + 2.269 (Jun. 2014 ) = NZ$4.94 Mil.
Turners Group NZ's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2014 was 2.587 (Dec. 2013 ) + 0.83 (Jun. 2014 ) = NZ$3.42 Mil.
Turners Group NZ's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2014 was -0.553 (Dec. 2013 ) + -0.54 (Jun. 2014 ) = NZ$-1.09 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.
Turners Group NZ (NZSE:TUA) 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. 2014, Turners Group NZ has a Sloan Ratio of 4.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Turners Group NZ Sloan Ratio % Related Terms
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Turners Auctions Limited (TUA-NZ) is New Zealand's largest auction house with 16 branches nation wide and annual turnover exceeding NZ$400m. TUA is also the largest single seller of motor vehicles in New Zealand. The business operates in two broad markets: used vehicles and commercial goods. Vehicle sales include trucks, damaged insurance salvaged vehicles, light commercial vehicles and passenger cars. Commercial sales include a wide variety of surplus equipment such as heavy plant and machinery, police and custom seized goods, liquidator sales, catering equipment, computers and furniture.
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