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.
* 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 Olympia Financial Group's Sloan Ratio %
For the Asset Management subindustry, Olympia Financial 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.
Olympia Financial Group's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Olympia Financial Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Olympia Financial Group's Sloan Ratio % falls into.
Olympia Financial 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.
Olympia Financial Group's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Olympia Financial Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 5.404 (Dec. 2022 ) + 5.228 (Mar. 2023 ) + 5.967 (Jun. 2023 ) + 6.219 (Sep. 2023 ) = C$22.82 Mil.
Olympia Financial Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -3.638 (Dec. 2022 ) + 13.39 (Mar. 2023 ) + 3.838 (Jun. 2023 ) + -2.549 (Sep. 2023 ) = C$11.04 Mil.
Olympia Financial Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -0.181 (Dec. 2022 ) + -0.186 (Mar. 2023 ) + -0.153 (Jun. 2023 ) + -0.163 (Sep. 2023 ) = C$-0.68 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.
Olympia Financial Group (TSX:OLY) 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 Sep. 2023, Olympia Financial Group has a Sloan Ratio of 24.17%, indicating there is a warning stage of accrual build up.
Olympia Financial Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Olympia Financial Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Olympia Financial Group (TSX:OLY) Business Description
Olympia Financial Group Inc is engaged in providing financial services. The company's operating segments are Private Health Services Plan division which markets, sells and administers health and dental benefits to business owners; Investment Account Services division specializes in registered account administration; The Currency and Global Payments division provides corporations and private clients a personalized service for buying and selling foreign currencies; The Exempt Edge division is focused on Onboarding fees; The Corporate and Shareholder Services division, which acts as a cost centre and the Corporate Division.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSX:OLY has been successfully added to your 