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.
Equus Total Return's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, Equus Total Return has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Equus Total Return Sloan Ratio % Historical Data
The historical data trend for Equus Total Return'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 Equus Total Return's Sloan Ratio %
For the Asset Management subindustry, Equus Total Return'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.
Equus Total Return's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Equus Total Return's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Equus Total Return's Sloan Ratio % falls into.
Equus Total Return 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.
Equus Total Return's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Equus Total Return's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -1.131 (Mar. 2023 ) + 5.945 (Jun. 2023 ) + 7.077 (Sep. 2023 ) + 1.058 (Dec. 2023 ) = $12.95 Mil.
Equus Total Return's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -5.48 (Mar. 2023 ) + -4.258 (Jun. 2023 ) + -7.683 (Sep. 2023 ) + -33.938 (Dec. 2023 ) = $-51.36 Mil.
Equus Total Return's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = $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.
Equus Total Return (NYSE:EQS) 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, Equus Total Return has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Equus Total Return Sloan Ratio % Related Terms
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Equus Total Return (Equus Total Return) Business Description
Equus Total Return Inc is a United States-based closed-end management investment company providing financial solutions for privately-owned middle market and small capitalization companies. Its investment objective is to seek the highest total return, consisting of capital appreciation and current income. It focuses to provide long-term capital gains by investing in the debt and equity securities of small and middle-market capitalization companies that are generally not publicly traded at the time of its investment. Its investment operations include investment selection, due diligence, structuring investments, and providing management assistance and monitoring of investments.
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