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.
Manulife Financial's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.15%.
As of Dec. 2023, Manulife Financial has a Sloan Ratio of -0.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Manulife Financial Sloan Ratio % Historical Data
The historical data trend for Manulife Financial'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.
For the Insurance - Life subindustry, Manulife Financial'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.
Manulife Financial Sloan Ratio % Distribution
For the Insurance industry and Financial Services sector, Manulife Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Manulife Financial's Sloan Ratio % falls into.
Manulife Financial 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.
Manulife Financial's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Manulife Financial's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 991.011 (Mar. 2023 ) + 861.809 (Jun. 2023 ) + 886.852 (Sep. 2023 ) + 1313.357 (Dec. 2023 ) = $4,053.03 Mil.
Manulife Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 2159.614 (Mar. 2023 ) + 4360.981 (Jun. 2023 ) + 4069.174 (Sep. 2023 ) + 4597.496 (Dec. 2023 ) = $15,187.27 Mil.
Manulife Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2888.986 (Mar. 2023 ) + -20.322 (Jun. 2023 ) + -2630.995 (Sep. 2023 ) + -4606.44 (Dec. 2023 ) = $-10,146.74 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.
Manulife Financial (OTCPK:MNLCF.PFD) 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, Manulife Financial has a Sloan Ratio of -0.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Manulife Financial Sloan Ratio % Related Terms
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Manulife Financial (Manulife Financial) Business Description
Manulife Financial provides life insurance, annuities, and asset management products to individuals and group customers in Canada, the United States, and Asia. Its investment management business contributes approximately 20% of its earnings and has around CAD 1.35 trillion in assets under management and administration as of June 30, 2023. The U.S. business, which primarily operates under the John Hancock brand, contributes about 30% of earnings and is mainly focused on providing insurance products for estate, business, and income protection. The Asia segment provides insurance products and insurance-based wealth accumulation products in over 11 countries and contributes around 30% of earnings. The Canadian business segment contributes approximately 20% of earnings.
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