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.
Close Brothers Group's Sloan Ratio for the quarter that ended in Jan. 2024 was 2.93%.
As of Jan. 2024, Close Brothers Group has a Sloan Ratio of 2.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Close Brothers Group Sloan Ratio % Historical Data
The historical data trend for Close Brothers Group'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 Close Brothers Group's Sloan Ratio %
For the Banks - Regional subindustry, Close Brothers Group'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.
Close Brothers Group's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Close Brothers Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Close Brothers Group's Sloan Ratio % falls into.
Close Brothers Group 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.
Close Brothers Group's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Close Brothers Group's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 93.686 (Jul. 2023 ) + 87.421 (Jan. 2024 ) = $181 Mil.
Close Brothers Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 242.655 (Jul. 2023 ) + -500.635 (Jan. 2024 ) = $-258 Mil.
Close Brothers Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -39.046 (Jul. 2023 ) + -44.6 (Jan. 2024 ) = $-84 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.
Close Brothers Group (OTCPK:CBGPY) 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 Jan. 2024, Close Brothers Group has a Sloan Ratio of 2.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Close Brothers Group Sloan Ratio % Related Terms
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Close Brothers Group (Close Brothers Group) Business Description
Close Brothers Group PLC is a merchant banking group providing lending, deposit solutions, wealth management services, and securities trading. The company mostly provides services to small businesses and individuals in the United Kingdom. Its strategy focuses on niche markets to drive high levels of repeat business with clients. The company distributes its service offerings with a direct salesforce and an intermediated distribution network. Its banking division provides asset, invoice, motor, premium, and property finance. Close Brothers' security business is primarily a liquidity provider to U.K. retail stockbrokers and institutions. The group's asset management division offers financial planning and investment management services.
Close Brothers Group (Close Brothers Group) Headlines
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