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 Apr. 2024, Reaves Utilityome Fund has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Reaves Utilityome Fund 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 Reaves Utilityome Fund's Sloan Ratio %
For the Asset Management subindustry, Reaves Utilityome Fund'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.
Reaves Utilityome Fund's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Reaves Utilityome Fund's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Reaves Utilityome Fund's Sloan Ratio % falls into.
Reaves Utilityome Fund 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.
Reaves Utilityome Fund's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Reaves Utilityome Fund's Net Income for the trailing twelve months (TTM) ended in Apr. 2024 was -242.992 (Oct. 2023 ) + 211.224 (Apr. 2024 ) = $-31.77 Mil.
Reaves Utilityome Fund's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2024 was 22.583 (Oct. 2023 ) + -50.345 (Apr. 2024 ) = $-27.76 Mil.
Reaves Utilityome Fund's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2024 was 0 (Oct. 2023 ) + 0 (Apr. 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.
Reaves Utilityome Fund (AMEX:UTG) 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 Apr. 2024, Reaves Utilityome Fund has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Reaves Utilityome Fund Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Reaves Utilityome Fund's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Reaves Utility Income Fund is a closed-end management investment company. The company's investment objective is to provide a high level of after-tax income and total return consisting of tax-advantaged dividend income and capital appreciation. It invests a portion of its total assets in securities of utility companies, which may include companies in the electric, gas, water, telecommunications sectors, as well as other companies engaged in other infrastructure operations.
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