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.
FSA Group's Sloan Ratio for the quarter that ended in Dec. 2023 was 19.13%.
As of Dec. 2023, FSA Group has a Sloan Ratio of 19.13%, indicating there is a warning stage of accrual build up.
FSA Group Sloan Ratio % Historical Data
The historical data trend for FSA Group'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 FSA Group's Sloan Ratio %
For the Credit Services subindustry, FSA 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.
FSA Group's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, FSA Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where FSA Group's Sloan Ratio % falls into.
FSA 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.
FSA Group's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
FSA Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 5.006 (Jun. 2023 ) + 3.193 (Dec. 2023 ) = A$8.20 Mil.
FSA Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 14.36 (Jun. 2023 ) + 4.474 (Dec. 2023 ) = A$18.83 Mil.
FSA Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -69.59 (Jun. 2023 ) + -92.487 (Dec. 2023 ) = A$-162.08 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.
FSA Group (ASX:FSA) 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, FSA Group has a Sloan Ratio of 19.13%, indicating there is a warning stage of accrual build up.
FSA Group Sloan Ratio % Related Terms
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FSA Group Ltd is an Australian company that provides credit services. It provides debt solutions and direct lending services to individuals and businesses. It has divided its business into Services and Consumer Lending. The services segment assists clients wishing to enter into a payment arrangement with their creditors, including informal arrangements, debt agreements, personal insolvency agreements and bankruptcy. The consumer lending segment provides home loans and personal loans to assist clients wishing to purchase a property or consolidate their debt or to purchase a motor vehicle and asset finance to SMEs wishing to purchase a vehicle and business?critical equipment. The company generates the majority of its revenue from Lending services.
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