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.
JMP Group LLC's Sloan Ratio for the quarter that ended in Sep. 2021 was -32.44%.
As of Sep. 2021, JMP Group LLC has a Sloan Ratio of -32.44%, indicating there is a warning stage of accrual build up.
JMP Group LLC Sloan Ratio % Historical Data
The historical data trend for JMP Group LLC'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 JMP Group LLC's Sloan Ratio %
For the Capital Markets subindustry, JMP Group LLC'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.
JMP Group LLC's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, JMP Group LLC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where JMP Group LLC's Sloan Ratio % falls into.
JMP Group LLC 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.
JMP Group LLC's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as
JMP Group LLC's Net Income for the trailing twelve months (TTM) ended in Sep. 2021 was 9.009 (Dec. 2020 ) + 1.089 (Mar. 2021 ) + 3.628 (Jun. 2021 ) + 21.819 (Sep. 2021 ) = $35.5 Mil.
JMP Group LLC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2021 was 34.419 (Dec. 2020 ) + -20.331 (Mar. 2021 ) + 30.372 (Jun. 2021 ) + 36.1 (Sep. 2021 ) = $80.6 Mil.
JMP Group LLC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2021 was 0.571 (Dec. 2020 ) + 0.155 (Mar. 2021 ) + 5.546 (Jun. 2021 ) + 26.492 (Sep. 2021 ) = $32.8 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.
JMP Group LLC (NYSE:JMP) 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 Sep. 2021, JMP Group LLC has a Sloan Ratio of -32.44%, indicating there is a warning stage of accrual build up.
JMP Group LLC Sloan Ratio % Related Terms
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JMP Group LLC (JMP Group LLC) Business Description
JMP Group LLC is an investment bank that focuses its investment banking and equity research services on small and middle-market firms in five industries: consumer, financial services, health care, real estate, and technology. JMP provides capital raising, financial advisory, sales and trading, and equity research services. JMP also manages more than $1 billion of assets through its hedge funds and collateralized loan obligation management business.
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