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.
Blue Owl Capital's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, Blue Owl Capital has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Blue Owl Capital Sloan Ratio % Historical Data
The historical data trend for Blue Owl Capital'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 Blue Owl Capital's Sloan Ratio %
For the Credit Services subindustry, Blue Owl Capital'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.
Blue Owl Capital's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Blue Owl Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Blue Owl Capital's Sloan Ratio % falls into.
Blue Owl Capital 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.
Blue Owl Capital's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Blue Owl Capital's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 195.562 (Jun. 2023 ) + 206.938 (Sep. 2023 ) + 188.967 (Dec. 2023 ) + 182.517 (Mar. 2024 ) = $774.0 Mil.
Blue Owl Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 496.538 (Jun. 2023 ) + 178.94 (Sep. 2023 ) + 413.858 (Dec. 2023 ) + 444.175 (Mar. 2024 ) = $1,533.5 Mil.
Blue Owl Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = $0.0 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.
Blue Owl Capital (NYSE:OBDC) 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 Mar. 2024, Blue Owl Capital has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Blue Owl Capital Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Blue Owl Capital's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Blue Owl Capital (Blue Owl Capital) Business Description
Blue Owl Capital Corp is a specialty finance company and business development company (BDC) focused on providing direct lending solutions to U.S. middle-market companies. The company seeks to generate current income and, to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns, including senior secured, subordinated, or mezzanine loans and equity-related instruments. Its investment strategy is intended to generate favorable returns across credit cycles with an emphasis on preserving capital.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
OBDC has been successfully added to your 