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.
Star Housing Finance's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
Warning Sign:
When sloan ratio (31.05)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Star Housing Finance has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Star Housing Finance Sloan Ratio % Historical Data
The historical data trend for Star Housing Finance'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 Star Housing Finance's Sloan Ratio %
For the Mortgage Finance subindustry, Star Housing Finance'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.
Star Housing Finance's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Star Housing Finance's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Star Housing Finance's Sloan Ratio % falls into.
Star Housing Finance 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.
Star Housing Finance's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
Star Housing Finance's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 15.536 (Jun. 2023 ) + 20.69 (Sep. 2023 ) + 25.208 (Dec. 2023 ) + 27.399 (Mar. 2024 ) = ₹88.8 Mil.
Star Housing Finance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹0.0 Mil.
Star Housing Finance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + 0 (Mar. 2024 ) = ₹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.
Star Housing Finance (BOM:539017) 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, Star Housing Finance has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Star Housing Finance Sloan Ratio % Related Terms
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Star Housing Finance (BOM:539017) Business Description
Star Housing Finance Ltd is a non-deposit-taking housing finance company. The company loan products include home loans, mortgage loans, and builder loans. The firm offers home loans for the purchase of flats and houses, renovation of existing units, extension of existing units, and purchase of plots for the construction of houses. The company offers a builder loan for the construction of residential flats. The company is engaged in the business of providing loans to individuals, corporate, and developers for the purchase, construction, development, and repair of houses, apartments, and commercial properties in India.
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