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 Sep. 2024, Raymond James Financial has a Sloan Ratio of 1.06%, indicating the company is in the safe zone and there is no funny business with accruals.
Raymond James Financial 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 Raymond James Financial's Sloan Ratio %
For the Asset Management subindustry, Raymond James Financial'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.
Raymond James Financial's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Raymond James Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Raymond James Financial's Sloan Ratio % falls into.
Raymond James Financial 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.
Raymond James Financial's Sloan Ratio for the fiscal year that ended in Sep. 2024 is calculated as
Raymond James Financial's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 498 (Dec. 2023 ) + 476 (Mar. 2024 ) + 492 (Jun. 2024 ) + 602 (Sep. 2024 ) = $2,068 Mil.
Raymond James Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 543 (Dec. 2023 ) + 391 (Mar. 2024 ) + 711 (Jun. 2024 ) + 510 (Sep. 2024 ) = $2,155 Mil.
Raymond James Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -176 (Dec. 2023 ) + 67 (Mar. 2024 ) + -648 (Jun. 2024 ) + -211 (Sep. 2024 ) = $-968 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.
Raymond James Financial (NYSE:RJF) 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, Raymond James Financial has a Sloan Ratio of 1.06%, indicating the company is in the safe zone and there is no funny business with accruals.
Raymond James Financial Sloan Ratio % Related Terms
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Raymond James Financial is a financial holding company whose major operations include wealth management, investment banking, asset management, and commercial banking. The company supports more than 8,000 employee and independent contractor financial advisors across the United States, Canada, and the United Kingdom with over $1.2 trillion of assets under administration as of September 2023. Approximately 90% of the company's revenue is from the US and 70% is from the company's wealth-management segment.
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