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.
EFG HoldingE's Sloan Ratio for the quarter that ended in Jun. 2023 was 3.58%.
As of Jun. 2023, EFG HoldingE has a Sloan Ratio of 3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
EFG HoldingE Sloan Ratio % Historical Data
The historical data trend for EFG HoldingE'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 EFG HoldingE's Sloan Ratio %
For the Capital Markets subindustry, EFG HoldingE'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.
EFG HoldingE's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, EFG HoldingE's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where EFG HoldingE's Sloan Ratio % falls into.
EFG HoldingE 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.
EFG HoldingE's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
EFG HoldingE's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was 17.574 (Sep. 2022 ) + 29.752 (Dec. 2022 ) + 26.829 (Mar. 2023 ) + 12.09 (Jun. 2023 ) = €86.2 Mil.
EFG HoldingE's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 234.953 (Sep. 2022 ) + 143.716 (Dec. 2022 ) + 23.991 (Mar. 2023 ) + -186.343 (Jun. 2023 ) = €216.3 Mil.
EFG HoldingE's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -229.368 (Sep. 2022 ) + -111.75 (Dec. 2022 ) + 125.609 (Mar. 2023 ) + -36.863 (Jun. 2023 ) = €-252.4 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.
EFG HoldingE (STU:4LYI) 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 Jun. 2023, EFG HoldingE has a Sloan Ratio of 3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
EFG HoldingE Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of EFG HoldingE's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Egyptian Financial Group-Hermes Holding Co is a provider of investment banking products and services in the Middle East. The company is headquartered in Egypt and conducts the majority of its business domestically. The bank also has operations in Gulf countries and Lebanon. The company generates the majority of its revenue through brokerage services. In addition, the bank generates revenue through asset-management products, such as traditional and alternative investments, fixed-income, money market, equity, and Shariah-compliant mandates. The bank also engages in equity research, strategy and macroeconomic forecasts, industrial research, and private equity services for its clients.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
STU:4LYI has been successfully added to your 