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.
As of Jun. 2017, OneBeacon Insurance Group has a Sloan Ratio of -0.30%, indicating the company is in the safe zone and there is no funny business with accruals.
OneBeacon Insurance Group Sloan Ratio % Historical Data
* 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 OneBeacon Insurance Group's Sloan Ratio %
For the Insurance - Specialty subindustry, OneBeacon Insurance Group'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.
OneBeacon Insurance Group's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, OneBeacon Insurance Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where OneBeacon Insurance Group's Sloan Ratio % falls into.
OneBeacon Insurance Group 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.
OneBeacon Insurance Group's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
OneBeacon Insurance Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2017 was 28.3 (Sep. 2016 ) + 8.2 (Dec. 2016 ) + 32.1 (Mar. 2017 ) + -0.1 (Jun. 2017 ) = $69 Mil.
OneBeacon Insurance Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2017 was 71.4 (Sep. 2016 ) + -6.8 (Dec. 2016 ) + -1.3 (Mar. 2017 ) + 87.5 (Jun. 2017 ) = $151 Mil.
OneBeacon Insurance Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2017 was 9.4 (Sep. 2016 ) + -37 (Dec. 2016 ) + 32.3 (Mar. 2017 ) + -75.9 (Jun. 2017 ) = $-71 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.
OneBeacon Insurance Group (NYSE:OB) 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 Jun. 2017, OneBeacon Insurance Group has a Sloan Ratio of -0.30%, indicating the company is in the safe zone and there is no funny business with accruals.
OneBeacon Insurance Group Sloan Ratio % Related Terms
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OneBeacon Insurance Group (OneBeacon Insurance Group) Business Description
OneBeacon Insurance Group Ltd is a specialty property and casualty insurance writer. It offers a wide range of insurance products primarily in the US market through independent agencies, regional and national brokers, wholesalers and managing general agencies. Business activity of the group is further divided in to various segments such as Specialty Products, Specialty Industries, and Investing, Financing and Corporate. Its geographical area of operation includes California, New York, Texas, District of Columbia, Florida and Other and derives most of the revenue through premium and investment income.
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