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.
Princeton Capital's Sloan Ratio for the quarter that ended in Sep. 2024 was 0.00%.
As of Sep. 2024, Princeton Capital has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Princeton Capital Sloan Ratio % Historical Data
The historical data trend for Princeton Capital'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 Princeton Capital's Sloan Ratio %
For the Asset Management subindustry, Princeton Capital'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.
Princeton Capital's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Princeton Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Princeton Capital'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.
Princeton Capital's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Princeton Capital's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -0.854 (Dec. 2023 ) + -6.634 (Mar. 2024 ) + -1.132 (Jun. 2024 ) + -1.013 (Sep. 2024 ) = $-9.63 Mil.
Princeton Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 0.109 (Dec. 2023 ) + 0.005 (Mar. 2024 ) + 0.019 (Jun. 2024 ) + -0.532 (Sep. 2024 ) = $-0.40 Mil.
Princeton Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0 (Dec. 2023 ) + 0 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Sep. 2024 ) = $0.00 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.
Princeton Capital (OTCPK:PIAC) 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. 2024, Princeton Capital has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Princeton Capital Sloan Ratio % Related Terms
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Princeton Capital Corp is an externally managed, non-diversified, closed-end investment company that has elected to be treated as a BDC. Its investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments in private small and lower middle-market companies. While the company has sought to invest predominantly in private small and lower middle-market companies in various industries through first-lien loans, second-lien loans, unsecured loans, unitranche and mezzanine debt financing, often times with a corresponding equity investment, the company is now investing only in current investments and otherwise conserving cash.
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