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 Feb. 2025, Far Eastern University has a Sloan Ratio of 1.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Far Eastern University 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 Far Eastern University's Sloan Ratio %
For the Education & Training Services subindustry, Far Eastern University'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.
Far Eastern University's Sloan Ratio % Distribution in the Education Industry
For the Education industry and Consumer Defensive sector, Far Eastern University's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Far Eastern University'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.
Far Eastern University's Sloan Ratio for the fiscal year that ended in May. 2024 is calculated as
Far Eastern University's Net Income for the trailing twelve months (TTM) ended in Feb. 2025 was 627.442 (May. 2024 ) + -99.761 (Aug. 2024 ) + 729.584 (Nov. 2024 ) + 647.49 (Feb. 2025 ) = ₱1,905 Mil.
Far Eastern University's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2025 was 657.774 (May. 2024 ) + 1212.999 (Aug. 2024 ) + -440.6 (Nov. 2024 ) + 1087.356 (Feb. 2025 ) = ₱2,518 Mil.
Far Eastern University's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2025 was -308.555 (May. 2024 ) + -167.735 (Aug. 2024 ) + -69.821 (Nov. 2024 ) + -438.082 (Feb. 2025 ) = ₱-984 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.
Far Eastern University (PHS:FEU) 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 Feb. 2025, Far Eastern University has a Sloan Ratio of 1.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Far Eastern University Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Far Eastern University's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Far Eastern University Inc is a private, non-sectarian institution of learning comprising the following different institutes that offer specific courses, namely, Institute of Arts and Sciences, Institute of Accounts, Business and Finance, Institute of Education, Institute of Architecture and Fine Arts, Institute of Nursing, Institute of Tourism and Hotel Management, and Institute of Law. The company's operating segment includes FEU Main; Trimestral Schools and Other Schools. It generates maximum revenue from the FEU Main segment.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PHS:FEU has been successfully added to your 