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.
PJT Partners's Sloan Ratio for the quarter that ended in Sep. 2024 was -16.88%.
As of Sep. 2024, PJT Partners has a Sloan Ratio of -16.88%, indicating there is a warning stage of accrual build up.
PJT Partners Sloan Ratio % Historical Data
The historical data trend for PJT Partners'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 PJT Partners's Sloan Ratio %
For the Capital Markets subindustry, PJT Partners'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.
PJT Partners's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, PJT Partners's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PJT Partners's Sloan Ratio % falls into.
PJT Partners 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.
PJT Partners's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
PJT Partners's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 24.912 (Dec. 2023 ) + 32.623 (Mar. 2024 ) + 28.316 (Jun. 2024 ) + 22.15 (Sep. 2024 ) = $108 Mil.
PJT Partners's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 123.774 (Dec. 2023 ) + -38.779 (Mar. 2024 ) + 193.554 (Jun. 2024 ) + 180.459 (Sep. 2024 ) = $459 Mil.
PJT Partners's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 156.608 (Dec. 2023 ) + 59.782 (Mar. 2024 ) + -165.976 (Jun. 2024 ) + -138.197 (Sep. 2024 ) = $-88 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.
PJT Partners (NYSE:PJT) 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, PJT Partners has a Sloan Ratio of -16.88%, indicating there is a warning stage of accrual build up.
PJT Partners Sloan Ratio % Related Terms
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PJT Partners Inc is an advisory-focused investment bank that offers a portfolio of advisory services designed to help its clients achieve their strategic objectives. The company delivers a range of strategic advisory, capital markets advisory, restructuring and special situations, and shareholder advisory services to corporations, financial sponsors, institutional investors, and governments around the world. It also provides private fund advisory and fundraising services for alternative investment strategies, including private equity, real estate, hedge funds, and private credit. The company generates its revenue from advisory fees, placement fees, and others. Geographically, It generates a majority of its revenue from the United States.
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