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Protective Insurance (Protective Insurance) Sloan Ratio % : 1.58% (As of Mar. 2021)


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What is Protective Insurance Sloan Ratio %?

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.

Protective Insurance's Sloan Ratio for the quarter that ended in Mar. 2021 was 1.58%.

As of Mar. 2021, Protective Insurance has a Sloan Ratio of 1.58%, indicating the company is in the safe zone and there is no funny business with accruals.


Protective Insurance Sloan Ratio % Historical Data

The historical data trend for Protective Insurance'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.

* Premium members only.

Protective Insurance Sloan Ratio % Chart

Protective Insurance Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.07 -0.37 -10.63 4.44 0.91

Protective Insurance Quarterly Data
Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.21 -2.58 -0.30 0.91 1.58

Competitive Comparison of Protective Insurance's Sloan Ratio %

For the Insurance - Property & Casualty subindustry, Protective Insurance'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.


Protective Insurance's Sloan Ratio % Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Protective Insurance's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Protective Insurance's Sloan Ratio % falls into.



Protective Insurance 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.

Protective Insurance's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2020 )-Cash Flow from Operations (A: Dec. 2020 )
-Cash Flow from Investing (A: Dec. 2020 ))/Total Assets (A: Dec. 2020 )
=(4.463-74.862
--86.032)/1722.827
=0.91%

Protective Insurance's Sloan Ratio for the quarter that ended in Mar. 2021 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2021 )
=(39.557-97.085
--85.382)/1762.675
=1.58%

Protective Insurance's Net Income for the trailing twelve months (TTM) ended in Mar. 2021 was 11.367 (Jun. 2020 ) + 3.281 (Sep. 2020 ) + 11.971 (Dec. 2020 ) + 12.938 (Mar. 2021 ) = $39.6 Mil.
Protective Insurance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2021 was 12.99 (Jun. 2020 ) + 31.413 (Sep. 2020 ) + 31.771 (Dec. 2020 ) + 20.911 (Mar. 2021 ) = $97.1 Mil.
Protective Insurance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2021 was 5.795 (Jun. 2020 ) + -47.318 (Sep. 2020 ) + -60.959 (Dec. 2020 ) + 17.1 (Mar. 2021 ) = $-85.4 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.


Protective Insurance  (NAS:PTVCB) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2021, Protective Insurance has a Sloan Ratio of 1.58%, indicating the company is in the safe zone and there is no funny business with accruals.


Protective Insurance Sloan Ratio % Related Terms

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Protective Insurance (Protective Insurance) Business Description

Traded in Other Exchanges
N/A
Address
111 Congressional Boulevard, Suite 500, Carmel, IN, USA, 46032
Protective Insurance Corp is a property-casualty insurer specializing in marketing and underwriting property, liability and workers' compensation coverage for trucking and public transportation fleets, as well as coverage for trucking industry independent contractors. It also offers a range of products and services including commercial automobile and workers' compensation insurance products. The company operates in the reportable segment of the Property and casualty insurance and derives key revenue from the premium income.

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