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.
Scottish Re Group's Sloan Ratio for the quarter that ended in Jun. 2011 was -14.45%.
As of Jun. 2011, Scottish Re Group has a Sloan Ratio of -14.45%, indicating there is a warning stage of accrual build up.
Scottish Re Group Sloan Ratio % Historical Data
The historical data trend for Scottish Re 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 Scottish Re Group's Sloan Ratio %
For the Insurance - Life subindustry, Scottish Re 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.
Scottish Re Group's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Scottish Re Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Scottish Re Group's Sloan Ratio % falls into.
Scottish Re 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.
Scottish Re Group's Sloan Ratio for the fiscal year that ended in Dec. 2010 is calculated as
Scottish Re Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2011 was 82.406 (Sep. 2010 ) + -20.848 (Dec. 2010 ) + 22.379 (Mar. 2011 ) + -180.664 (Jun. 2011 ) = $-96.73 Mil.
Scottish Re Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2011 was 27.347 (Sep. 2010 ) + 1.419 (Dec. 2010 ) + 22.003 (Mar. 2011 ) + -606.691 (Jun. 2011 ) = $-555.92 Mil.
Scottish Re Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2011 was -90.008 (Sep. 2010 ) + 122.243 (Dec. 2010 ) + 64.324 (Mar. 2011 ) + 962.317 (Jun. 2011 ) = $1,058.88 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.
Scottish Re Group (OTCPK:SKRUF.PFD) 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 Jun. 2011, Scottish Re Group has a Sloan Ratio of -14.45%, indicating there is a warning stage of accrual build up.
Scottish Re Group Sloan Ratio % Related Terms
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Scottish Re Group (Scottish Re Group) Business Description
Scottish Re Group is engaged in the reinsurance of life insurance, annuities and annuity-type products. It accepts part of the risk of insurance policies for a portion of the income earned by the policies. The company uses its headquarters in the tax-friendly Cayman Islands to provide wealth management and estate planning services to high net worth clients. It has operations in Bermuda, the Cayman Islands, Ireland, the United Kingdom, and the United States.
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