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.
Navigators Group's Sloan Ratio for the quarter that ended in Mar. 2019 was -0.63%.
As of Mar. 2019, Navigators Group has a Sloan Ratio of -0.63%, indicating the company is in the safe zone and there is no funny business with accruals.
Navigators Group Sloan Ratio % Historical Data
The historical data trend for Navigators 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 Navigators Group's Sloan Ratio %
For the Insurance - Property & Casualty subindustry, Navigators 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.
Navigators Group's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Navigators Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Navigators Group's Sloan Ratio % falls into.
Navigators 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.
Navigators Group's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
Navigators Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2019 was 32.104 (Jun. 2018 ) + 4.625 (Sep. 2018 ) + -33.368 (Dec. 2018 ) + -1.738 (Mar. 2019 ) = $2 Mil.
Navigators Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2019 was 46.958 (Jun. 2018 ) + 184.368 (Sep. 2018 ) + 75.249 (Dec. 2018 ) + 30.9 (Mar. 2019 ) = $337 Mil.
Navigators Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2019 was -41.846 (Jun. 2018 ) + -118.929 (Sep. 2018 ) + -133.027 (Dec. 2018 ) + -5.043 (Mar. 2019 ) = $-299 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.
Navigators Group (NAS:NAVG) 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 Mar. 2019, Navigators Group has a Sloan Ratio of -0.63%, indicating the company is in the safe zone and there is no funny business with accruals.
Navigators Group Sloan Ratio % Related Terms
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Navigators Group (Navigators Group) Business Description
Navigators Group is a property and casualty insurance company that operates multiple segments, including marine, property and casualty, and professional liabilities. Navigators splits these segments apart by region according to either United States exposure or international exposure. The vast majority of the company's revenue comes from its United States property and casualty business. Navigators distributes its products through a network of insurance brokers. The company considers merger and acquisition investment as a component of its operational growth strategy.
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