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.
Mr. Cooper Group's Sloan Ratio for the quarter that ended in Mar. 2024 was 15.73%.
As of Mar. 2024, Mr. Cooper Group has a Sloan Ratio of 15.73%, indicating there is a warning stage of accrual build up.
Mr. Cooper Group Sloan Ratio % Historical Data
The historical data trend for Mr. Cooper 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 Mr. Cooper Group's Sloan Ratio %
For the Mortgage Finance subindustry, Mr. Cooper 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.
Mr. Cooper Group's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Mr. Cooper Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mr. Cooper Group's Sloan Ratio % falls into.
Mr. Cooper 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.
Mr. Cooper Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Mr. Cooper Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 142 (Jun. 2023 ) + 275 (Sep. 2023 ) + 46 (Dec. 2023 ) + 181 (Mar. 2024 ) = $644 Mil.
Mr. Cooper Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -11 (Jun. 2023 ) + 623 (Sep. 2023 ) + 124 (Dec. 2023 ) + 28 (Mar. 2024 ) = $764 Mil.
Mr. Cooper Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -469 (Jun. 2023 ) + -512 (Sep. 2023 ) + -748 (Dec. 2023 ) + -715 (Mar. 2024 ) = $-2,444 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.
Mr. Cooper Group (NAS:COOP) 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. 2024, Mr. Cooper Group has a Sloan Ratio of 15.73%, indicating there is a warning stage of accrual build up.
Mr. Cooper Group Sloan Ratio % Related Terms
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Mr. Cooper Group (Mr. Cooper Group) Business Description
Mr. Cooper Group Inc is a home loan servicer. The company focuses on delivering a variety of servicing and lending products. It has two operating segments namely Servicing segment which performs operational activities on behalf of investors or owners of the underlying mortgages and mortgage servicing rights, including collecting and disbursing borrower payments, investor reporting, and customer service and The Originations segment originates residential mortgage loans through a direct-to-consumer channel, which provides refinance options for existing customers, and through a correspondent channel, which purchases or originates loans from mortgage bankers and brokers.
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