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.
Financial Gravity's Sloan Ratio for the quarter that ended in Jun. 2023 was 0.00%.
As of Jun. 2023, Financial Gravity has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Financial Gravity Sloan Ratio % Historical Data
The historical data trend for Financial Gravity'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 Financial Gravity's Sloan Ratio %
For the Financial Conglomerates subindustry, Financial Gravity'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.
Financial Gravity's Sloan Ratio % Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, Financial Gravity's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Financial Gravity's Sloan Ratio % falls into.
Financial Gravity 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.
Financial Gravity's Sloan Ratio for the fiscal year that ended in Sep. 2022 is calculated as
Financial Gravity's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was 0.047 (Jun. 2022 ) + 0.174 (Sep. 2022 ) + -0.133 (Dec. 2022 ) + -0.072 (Jun. 2023 ) = $0.02 Mil.
Financial Gravity's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 0.03 (Jun. 2022 ) + 0.004 (Sep. 2022 ) + -0.118 (Dec. 2022 ) + 0 (Jun. 2023 ) = $-0.08 Mil.
Financial Gravity's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was 0.003 (Jun. 2022 ) + -0.008 (Sep. 2022 ) + 0.012 (Dec. 2022 ) + 0 (Jun. 2023 ) = $0.01 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.
Financial Gravity (OTCPK:FGCO) 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 Jun. 2023, Financial Gravity has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Financial Gravity Sloan Ratio % Related Terms
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Financial Gravity (Financial Gravity) Business Description
Financial Gravity Companies Inc through its subsidiaries helps investment advisors and tax professionals expand their businesses by adding additional services, including their own multi-family office. Financial services professionals are able to leverage Financial Gravity systems, technology, proprietary resources, and deep domain expertise to provide a comprehensive financial service experience to their clients that spans proactive tax planning, retirement and estate planning, wealth management, and risk mitigation. The company's operating segments include FGCO; Forta; FGAM; FGFOS; FGIS; FGEM; and TMN.
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