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.
Axis Capital Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.08%.
As of Dec. 2023, Axis Capital Holdings has a Sloan Ratio of -0.08%, indicating the company is in the safe zone and there is no funny business with accruals.
Axis Capital Holdings Sloan Ratio % Historical Data
The historical data trend for Axis Capital Holdings'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 Axis Capital Holdings's Sloan Ratio %
For the Insurance - Specialty subindustry, Axis Capital Holdings'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.
Axis Capital Holdings's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Axis Capital Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Axis Capital Holdings's Sloan Ratio % falls into.
Axis Capital Holdings 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.
Axis Capital Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Axis Capital Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 180.097 (Mar. 2023 ) + 150.674 (Jun. 2023 ) + 188.098 (Sep. 2023 ) + -142.578 (Dec. 2023 ) = $376 Mil.
Axis Capital Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 222.434 (Mar. 2023 ) + 378.645 (Jun. 2023 ) + 348.224 (Sep. 2023 ) + 306.256 (Dec. 2023 ) = $1,256 Mil.
Axis Capital Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -159.404 (Mar. 2023 ) + 13.522 (Jun. 2023 ) + -544.111 (Sep. 2023 ) + -165.617 (Dec. 2023 ) = $-856 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.
Axis Capital Holdings (NYSE:AXS) 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, Axis Capital Holdings has a Sloan Ratio of -0.08%, indicating the company is in the safe zone and there is no funny business with accruals.
Axis Capital Holdings Sloan Ratio % Related Terms
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Axis Capital Holdings (Axis Capital Holdings) Business Description
Axis Capital Holdings Ltd is a property and casualty insurance company that provides various products and services to clients and distribution partners. The company has operating subsidiaries and branch networks based in Bermuda, the United States, Canada, Europe, and Singapore. Its business consists of two distinct global underwriting platforms, AXIS Insurance, and AXIS Reinsurance. The company manages its portfolio holistically, aiming to construct an optimum consolidated portfolio of funded and unfunded risks.
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