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 Dec. 2023, Stellus Capital Investment has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Stellus Capital Investment 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 Stellus Capital Investment's Sloan Ratio %
For the Asset Management subindustry, Stellus Capital Investment'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.
Stellus Capital Investment's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Stellus Capital Investment's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Stellus Capital Investment's Sloan Ratio % falls into.
Stellus Capital Investment 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.
Stellus Capital Investment's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 4.736 (Mar. 2023 ) + 3.711 (Jun. 2023 ) + -2.397 (Sep. 2023 ) + 11.483 (Dec. 2023 ) = $17.53 Mil.
Stellus Capital Investment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -32.043 (Mar. 2023 ) + 0.083 (Jun. 2023 ) + -10.474 (Sep. 2023 ) + 25.17 (Dec. 2023 ) = $-17.26 Mil.
Stellus Capital Investment's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = $0.00 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.
Stellus Capital Investment (NYSE:SCM) 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, Stellus Capital Investment has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Stellus Capital Investment Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Stellus Capital Investment's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Stellus Capital Investment (Stellus Capital Investment) Business Description
Stellus Capital Investment Corp is a closed-end, non-diversified management investment company. Its objective is to maximize the total return to its stockholders in the form of current income and capital appreciation. It invests through a first lien, second lien, unitranche, and mezzanine debt financing, often with a corresponding equity investment. The company invests in various sectors, such as business services, energy, general industrial, government services, healthcare, software, and specialty finance. Business activity of the firm is functioned through the United States and it generates revenue in the form of interest income on debt investments and capital gains and distributions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
SCM has been successfully added to your 