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 Dec. 2024, Virtus Investment Partners has a Sloan Ratio of 3.43%, indicating the company is in the safe zone and there is no funny business with accruals.
Virtus Investment Partners 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 Virtus Investment Partners's Sloan Ratio %
For the Asset Management subindustry, Virtus Investment 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.
Virtus Investment Partners's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Virtus Investment Partners's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Virtus Investment Partners's Sloan Ratio % falls into.
Virtus Investment 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.
Virtus Investment Partners's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 29.858 (Mar. 2024 ) + 17.614 (Jun. 2024 ) + 40.98 (Sep. 2024 ) + 33.294 (Dec. 2024 ) = $121.7 Mil. Virtus Investment Partners's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -34.528 (Mar. 2024 ) + 69.955 (Jun. 2024 ) + 69.135 (Sep. 2024 ) + -102.807 (Dec. 2024 ) = $1.8 Mil. Virtus Investment Partners's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -2.46 (Mar. 2024 ) + -1.34 (Jun. 2024 ) + -1.016 (Sep. 2024 ) + -12.135 (Dec. 2024 ) = $-17.0 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.
Virtus Investment Partners (NYSE:VRTS) 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. 2024, Virtus Investment Partners has a Sloan Ratio of 3.43%, indicating the company is in the safe zone and there is no funny business with accruals.
Virtus Investment Partners Sloan Ratio % Related Terms
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Virtus Investment Partners Inc provides investment management and related services to institutions and individuals. It uses a multi-manager, multi-style approach, offering investment strategies from investment managers, each having its distinct investment style, autonomous investment process, and individual brand, as well as from select unaffiliated managers for certain funds. Through its multi-manager model, the group provides investment managers with distribution, business, and operational support. The Company operates in one business segment, namely as an asset manager providing investment management and related services for individual and institutional clients.
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