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.
Aviva's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.27%.
As of Dec. 2023, Aviva has a Sloan Ratio of 1.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Aviva Sloan Ratio % Historical Data
The historical data trend for Aviva'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.
For the Insurance - Diversified subindustry, Aviva'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.
Aviva's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Aviva's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aviva's Sloan Ratio % falls into.
Aviva 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.
Aviva's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Aviva's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 462.121 (Jun. 2023 ) + 910.127 (Dec. 2023 ) = $1,372 Mil.
Aviva's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -1478.535 (Jun. 2023 ) + -1975.949 (Dec. 2023 ) = $-3,454 Mil.
Aviva's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -79.545 (Jun. 2023 ) + -363.291 (Dec. 2023 ) = $-443 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.
Aviva (OTCPK:AIVAF) 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, Aviva has a Sloan Ratio of 1.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Aviva Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Aviva's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Aviva is a multiline insurer that is listed on the London Stock Exchange. The company traces its roots back to the 17th century with the establishment of Hand-in-Hand. After the Great Fire of London, this mutual was formed to provide protection against fires. Hand-in-Hand was then acquired by Commercial Union in 1905. Over the years, Hand-in-Hand insured London landmarks such as London Bridge, the British Museum, and the Palace in Lambeth. The life insurance part of Aviva began in the early part of the 18th century with the establishment of Amicable, again a mutual society but this time to protect widows and children against the loss of life.
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