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.
As of Dec. 2023, Westwood Holdings Group has a Sloan Ratio of 4.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Westwood Holdings Group Sloan Ratio % Historical Data
* 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 Westwood Holdings Group's Sloan Ratio %
For the Asset Management subindustry, Westwood Holdings 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.
Westwood Holdings Group's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Westwood Holdings Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Westwood Holdings Group's Sloan Ratio % falls into.
Westwood Holdings 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.
Westwood Holdings Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Westwood Holdings Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.714 (Mar. 2023 ) + 2.899 (Jun. 2023 ) + 4.375 (Sep. 2023 ) + 2.583 (Dec. 2023 ) = $10.57 Mil.
Westwood Holdings Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -3.179 (Mar. 2023 ) + -0.723 (Jun. 2023 ) + -1.782 (Sep. 2023 ) + 4.499 (Dec. 2023 ) = $-1.19 Mil.
Westwood Holdings Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.252 (Mar. 2023 ) + 0.414 (Jun. 2023 ) + 4.978 (Sep. 2023 ) + -0.028 (Dec. 2023 ) = $4.11 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.
Westwood Holdings Group (NYSE:WHG) 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, Westwood Holdings Group has a Sloan Ratio of 4.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Westwood Holdings Group Sloan Ratio % Related Terms
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Westwood Holdings Group (Westwood Holdings Group) Business Description
Westwood Holdings Group Inc through its subsidiaries is engaged in managing investment assets and providing services for its clients. The company operates its business through the Advisory and Trust segments. Its advisory segment provides investment advisory services to corporate retirement plans, public retirement plans, endowments, foundations, individuals and the Westwood Funds, as well as investment sub-advisory services to mutual funds and its trust segment. The Trust segment offers trust and custodial services to its clients and to its advisory segment and sponsors common trust funds to institutions and high net worth individuals. It generates maximum revenue from the Advisory segment. Geographically, it derives a majority of revenue from the United States.
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