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Hennessy Advisors (Hennessy Advisors) Sloan Ratio % : -0.59% (As of Mar. 2024)


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What is Hennessy Advisors 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.

Hennessy Advisors's Sloan Ratio for the quarter that ended in Mar. 2024 was -0.59%.

As of Mar. 2024, Hennessy Advisors has a Sloan Ratio of -0.59%, indicating the company is in the safe zone and there is no funny business with accruals.


Hennessy Advisors Sloan Ratio % Historical Data

The historical data trend for Hennessy Advisors'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.

Hennessy Advisors Sloan Ratio % Chart

Hennessy Advisors Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.26 -2.00 -2.19 -1.56 -1.06

Hennessy Advisors Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
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 -1.00 -1.05 -1.06 -1.41 -0.59

Competitive Comparison of Hennessy Advisors's Sloan Ratio %

For the Asset Management subindustry, Hennessy Advisors'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.


Hennessy Advisors's Sloan Ratio % Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, Hennessy Advisors's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Hennessy Advisors's Sloan Ratio % falls into.



Hennessy Advisors 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.

Hennessy Advisors's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as

Sloan Ratio=(Net Income (A: Sep. 2023 )-Cash Flow from Operations (A: Sep. 2023 )
-Cash Flow from Investing (A: Sep. 2023 ))/Total Assets (A: Sep. 2023 )
=(4.771-7.134
--0.819)/145.719
=-1.06%

Hennessy Advisors's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2024 )
=(5.197-7.468
--1.403)/147.335
=-0.59%

Hennessy Advisors's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1.116 (Jun. 2023 ) + 1.341 (Sep. 2023 ) + 1.2 (Dec. 2023 ) + 1.54 (Mar. 2024 ) = $5.20 Mil.
Hennessy Advisors's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 2.691 (Jun. 2023 ) + 2.488 (Sep. 2023 ) + 0.416 (Dec. 2023 ) + 1.873 (Mar. 2024 ) = $7.47 Mil.
Hennessy Advisors's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.138 (Jun. 2023 ) + -0.155 (Sep. 2023 ) + -0.25 (Dec. 2023 ) + -0.86 (Mar. 2024 ) = $-1.40 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.


Hennessy Advisors  (NAS:HNNA) 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. 2024, Hennessy Advisors has a Sloan Ratio of -0.59%, indicating the company is in the safe zone and there is no funny business with accruals.


Hennessy Advisors Sloan Ratio % Related Terms

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Hennessy Advisors (Hennessy Advisors) Business Description

Traded in Other Exchanges
N/A
Address
7250 Redwood Boulevard, Suite 200, Novato, CA, USA, 94945
Hennessy Advisors Inc is an investment management company, engaged in the managing and marketing of open-end mutual funds branded as the Hennessy Funds. It offers domestic equity, sectors, and specialty, balanced and fixed income products. It provides investment advisory services and shareholder services to the Hennessy Funds. Its investment advisory services include managing the composition of each fund's portfolio, including the purchase, retention, and disposition of portfolio securities in accordance with the Fund's investment objectives, policies, and restrictions; conducting investment research, and monitoring compliance with each fund's investment restrictions and applicable laws and regulations.
Executives
Neil J Hennessy director, 10 percent owner, officer: President and CEO 7250 REDWOOD BLVD., SUITE 200, NOVATO CA 94945
Kiera Newton director 7250 REDWOOD BLVD., SUITE 200, NOVATO CA 94945
Knight Oriordan Lydia D director 7240 REDWOOD BLVD., SUITE 200, NOVATO CA 94945
Rodger Offenbach director 7250 REDWOOD BLVD, SUITE 200, NOVATO CA 94945
Daniel B Steadman director, officer: Executive Vice President 7250 REDWOOD BLVD., SUITE 200, NOVATO CA 94945
Brian A Hennessey director 7250 REDWOOD BLVD, SUITE 200, NOVATO CA 94945
Teresa M Nilsen director, officer: EVP, CFO and Secretary 7250 REDWOOD BLVD., SUITE 200, NOVATO CA 94945
Thomas L Seavey director 7250 REDWOOD BLVD., SUITE 200, NOVATO CA 94945
Kathryn Fahy officer: SVP and CFO 7250 REDWOOD BOULEVARD, SUITE 200, NOVATO CA 94945
Susan Weber Pomilia director 7250 REDWOOD BLVD, SUITE 200, NOVATO CA 94945
Daniel G Libarie director 7250 REDWOOD BLVD, SUITE 200, NOVATO CA 94945
Charles W Bennett director 700 IRWIN STREET, SAN RAFAEL CA 94901-3300
Henry Hansel director 7250 REDWOOD BLVD, SUITE 200, NOVATO CA 94945

Hennessy Advisors (Hennessy Advisors) Headlines