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.
Signature Aviation's Sloan Ratio for the quarter that ended in Dec. 2020 was -5.26%.
As of Dec. 2020, Signature Aviation has a Sloan Ratio of -5.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Signature Aviation Sloan Ratio % Historical Data
The historical data trend for Signature Aviation'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 Signature Aviation's Sloan Ratio %
For the Airports & Air Services subindustry, Signature Aviation'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.
Signature Aviation's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Signature Aviation's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Signature Aviation's Sloan Ratio % falls into.
Signature Aviation 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.
Signature Aviation's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Signature Aviation's Net Income for the trailing twelve months (TTM) ended in Dec. 2020 was -15.181 (Jun. 2020 ) + 6.994 (Dec. 2020 ) = £-8.19 Mil.
Signature Aviation's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2020 was 83.016 (Jun. 2020 ) + 150.586 (Dec. 2020 ) = £233.60 Mil.
Signature Aviation's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2020 was -15.98 (Jun. 2020 ) + -46.426 (Dec. 2020 ) = £-62.41 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.
Signature Aviation (LSE:77GE.PFD) 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. 2020, Signature Aviation has a Sloan Ratio of -5.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Signature Aviation Sloan Ratio % Related Terms
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Signature Aviation (LSE:77GE.PFD) Business Description
Signature Aviation is a United Kingdom-based global aviation support and aftermarket services provider that focuses on servicing the business and general aviation market. The group, including Signature FBO, TechnicAir, and Epic fuels, provides full-service flight and home-base support through the fixed-base operation network for business and general aviation users. The company operates through three segments: owner operators, fractional owner operators, and charter operators. Epic provides fuel and fuel-related services at fixed-base networks across North America, including fuel purchasing cards and transaction processing. The company generates most of its revenue in North America.
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