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.
Grenke AG's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.69%.
As of Dec. 2023, Grenke AG has a Sloan Ratio of -2.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Grenke AG Sloan Ratio % Historical Data
The historical data trend for Grenke AG'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 Grenke AG's Sloan Ratio %
For the Credit Services subindustry, Grenke AG'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.
Grenke AG's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Grenke AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Grenke AG's Sloan Ratio % falls into.
Grenke AG 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.
Grenke AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Grenke AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 19.364 (Mar. 2023 ) + 27.638 (Jun. 2023 ) + 26.251 (Sep. 2023 ) + 26.306 (Dec. 2023 ) = $99.6 Mil.
Grenke AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 428.425 (Mar. 2023 ) + -189.03 (Jun. 2023 ) + 394.161 (Sep. 2023 ) + -289.806 (Dec. 2023 ) = $343.8 Mil.
Grenke AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.756 (Mar. 2023 ) + -19.819 (Jun. 2023 ) + -1.846 (Sep. 2023 ) + -12.732 (Dec. 2023 ) = $-36.2 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.
Grenke AG (OTCPK:GKSGF) 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, Grenke AG has a Sloan Ratio of -2.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Grenke AG Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Grenke AG's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Grenke AG is a financial-services company that, under a franchise model, provides operational infrastructure, the licensing of the group's name to contracted parties, and other support services. The firm retains the right to acquire the franchisee based on a predetermined formula and time frame. Grenke's reporting segments include Leasing, Banking, and Factoring. The Leasing segment produces the most revenue. GRENKE Bank's actions compose the banking segment, primarily including acting as the financing partner for SMEs. The Factoring segment includes mainly small-ticket factoring services. The company operates primarily in Europe, with the most revenue coming from Ireland and Germany.
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