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.
Reliance Global Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -51.58%.
Warning Sign:
When sloan ratio (-51.58)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Reliance Global Group has a Sloan Ratio of -51.58%, indicating earnings are more likely to be made up of accruals.
Reliance Global Group Sloan Ratio % Historical Data
The historical data trend for Reliance Global Group'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 Reliance Global Group's Sloan Ratio %
For the Insurance Brokers subindustry, Reliance Global Group'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.
Reliance Global Group's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Reliance Global Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Reliance Global Group's Sloan Ratio % falls into.
Reliance Global Group 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.
Reliance Global Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Reliance Global Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -1.789 (Mar. 2023 ) + -1.055 (Jun. 2023 ) + -0.139 (Sep. 2023 ) + -9.027 (Dec. 2023 ) = $-12.01 Mil.
Reliance Global Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -1.065 (Mar. 2023 ) + -0.942 (Jun. 2023 ) + 1.99 (Sep. 2023 ) + -0.831 (Dec. 2023 ) = $-0.85 Mil.
Reliance Global Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.096 (Mar. 2023 ) + 0.831 (Jun. 2023 ) + -0.017 (Sep. 2023 ) + -0.008 (Dec. 2023 ) = $0.71 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.
Reliance Global Group (NAS:RELI) 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 Dec. 2023, Reliance Global Group has a Sloan Ratio of -51.58%, indicating earnings are more likely to be made up of accruals.
Reliance Global Group Sloan Ratio % Related Terms
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Reliance Global Group (Reliance Global Group) Business Description
Reliance Global Group Inc operates as a holding company with diversified interests in the insurance market, as well as other related sectors. The company focuses on growing by pursuing an acquisition strategy, initially and primarily focused on wholesale and retail insurance agencies. Its primary strategy is to identify specific risks to reward arbitrage opportunities and develop these on a national platform, thereby increasing revenues and returns, and then identify and acquire undervalued wholesale and retail insurance agencies with operations in growing or underserved segments, expand and optimize their operations, and achieve asset value appreciation while generating interim cash flows. It generates revenue in the form of commissions.
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