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.
Franklin BSP Lending's Sloan Ratio for the quarter that ended in Sep. 2023 was 0.00%.
As of Sep. 2023, Franklin BSP Lending has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Franklin BSP Lending Sloan Ratio % Historical Data
The historical data trend for Franklin BSP Lending'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 Franklin BSP Lending's Sloan Ratio %
For the Asset Management subindustry, Franklin BSP Lending'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.
Franklin BSP Lending's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Franklin BSP Lending's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Franklin BSP Lending's Sloan Ratio % falls into.
Franklin BSP Lending 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.
Franklin BSP Lending's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Franklin BSP Lending's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 12.323 (Dec. 2022 ) + 32.987 (Mar. 2023 ) + 29.641 (Jun. 2023 ) + 39.142 (Sep. 2023 ) = $114.1 Mil.
Franklin BSP Lending's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -49.397 (Dec. 2022 ) + -1.81 (Mar. 2023 ) + 33.053 (Jun. 2023 ) + 122.908 (Sep. 2023 ) = $104.8 Mil.
Franklin BSP Lending's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 0 (Dec. 2022 ) + 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) = $0.0 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.
Franklin BSP Lending (OTCPK:BDVC) 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 Sep. 2023, Franklin BSP Lending has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Franklin BSP Lending Sloan Ratio % Related Terms
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Franklin BSP Lending (Franklin BSP Lending) Business Description
Franklin BSP Lending Corp is an externally managed, non-diversified closed-end management investment company. The company has elected to be regulated as a business development company. The company's investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in senior secured loans, and to a lesser extent, mezzanine loans, unsecured loans and equity of predominantly private U.S. middle-market companies. It also purchases interests in loans or corporate bonds through secondary market transactions.
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