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.
Palomar Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was 3.58%.
As of Mar. 2024, Palomar Holdings has a Sloan Ratio of 3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Palomar Holdings Sloan Ratio % Historical Data
The historical data trend for Palomar Holdings'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 Palomar Holdings's Sloan Ratio %
For the Insurance - Property & Casualty subindustry, Palomar Holdings'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.
Palomar Holdings's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, Palomar Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Palomar Holdings's Sloan Ratio % falls into.
Palomar Holdings 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.
Palomar Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Palomar Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 17.562 (Jun. 2023 ) + 18.432 (Sep. 2023 ) + 25.896 (Dec. 2023 ) + 26.382 (Mar. 2024 ) = $88.3 Mil.
Palomar Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 5.766 (Jun. 2023 ) + 70.633 (Sep. 2023 ) + 22.27 (Dec. 2023 ) + 33.125 (Mar. 2024 ) = $131.8 Mil.
Palomar Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -19.007 (Jun. 2023 ) + -51.249 (Sep. 2023 ) + -24.322 (Dec. 2023 ) + -16.331 (Mar. 2024 ) = $-110.9 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.
Palomar Holdings (NAS:PLMR) 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, Palomar Holdings has a Sloan Ratio of 3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Palomar Holdings Sloan Ratio % Related Terms
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Palomar Holdings (Palomar Holdings) Business Description
Palomar Holdings Inc is a United States-based company focused on the provision of specialty property insurance earthquake, wind, and flood insurance products. The company's core focus is on the residential and commercial earthquake markets in earthquake-exposed states such as California, Oregon, Washington, and states with exposure to the New Madrid Seismic Zone. It offers specialty property insurance products in the target markets to both individuals and businesses through multiple channels, including retail agents, program administrators, wholesale brokers, and in partnership with other insurance companies. Its products include Residential Earthquake, Commercial Earthquake, Specialty Homeowners, Inland Marine, Commercial All Risk, Hawaii Hurricane, Residential Flood and others.
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