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.
Capital Southwest's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, Capital Southwest has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Capital Southwest Sloan Ratio % Historical Data
The historical data trend for Capital Southwest'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 Capital Southwest's Sloan Ratio %
For the Asset Management subindustry, Capital Southwest'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.
Capital Southwest's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Capital Southwest's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Capital Southwest's Sloan Ratio % falls into.
Capital Southwest 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.
Capital Southwest's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Capital Southwest's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 18.176 (Mar. 2023 ) + 23.812 (Jun. 2023 ) + 22.624 (Sep. 2023 ) + 23.484 (Dec. 2023 ) = $88.1 Mil.
Capital Southwest's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -33.452 (Mar. 2023 ) + -55.626 (Jun. 2023 ) + -48.791 (Sep. 2023 ) + 18.014 (Dec. 2023 ) = $-119.9 Mil.
Capital Southwest's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.122 (Mar. 2023 ) + -0.002 (Jun. 2023 ) + 0 (Sep. 2023 ) + -0.001 (Dec. 2023 ) = $-0.1 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.
Capital Southwest (NAS:CSWC) 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, Capital Southwest has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Capital Southwest Sloan Ratio % Related Terms
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Capital Southwest (Capital Southwest) Business Description
Capital Southwest Corp is an us-based investment company that specializes in providing customized financing to middle market companies across various industries. The company's investment objective to produce attractive risk-adjusted returns by generating current income from debt investments and capital appreciation from equity and equity related investments. It focuses on providing flexible financing solutions through partnership with business owners, management teams, and financial sponsors. The company's portfolio may include senior debt, second lien and subordinated debt, preferred stock and common stock and warrants. The primary source company's revenue comprises interest income and dividend income from investments made as well as management fees.
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