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.
Heritage Global's Sloan Ratio for the quarter that ended in Dec. 2023 was 18.42%.
As of Dec. 2023, Heritage Global has a Sloan Ratio of 18.42%, indicating there is a warning stage of accrual build up.
Heritage Global Sloan Ratio % Historical Data
The historical data trend for Heritage Global'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 Heritage Global's Sloan Ratio %
For the Capital Markets subindustry, Heritage Global'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.
Heritage Global's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Heritage Global's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Heritage Global's Sloan Ratio % falls into.
Heritage Global 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.
Heritage Global's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Heritage Global's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 2.829 (Mar. 2023 ) + 2.779 (Jun. 2023 ) + 1.977 (Sep. 2023 ) + 4.89 (Dec. 2023 ) = $12.48 Mil.
Heritage Global's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 8.945 (Mar. 2023 ) + -2.282 (Jun. 2023 ) + 5.912 (Sep. 2023 ) + 0.446 (Dec. 2023 ) = $13.02 Mil.
Heritage Global's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -6.786 (Mar. 2023 ) + -1.206 (Jun. 2023 ) + -6.549 (Sep. 2023 ) + -1.328 (Dec. 2023 ) = $-15.87 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.
Heritage Global (NAS:HGBL) 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. 2023, Heritage Global has a Sloan Ratio of 18.42%, indicating there is a warning stage of accrual build up.
Heritage Global Sloan Ratio % Related Terms
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Heritage Global (Heritage Global) Business Description
Heritage Global Inc values and monetizes industrial and financial assets by providing acquisition, disposition, valuation, and lending services for surplus and distressed assets. It aids in facilitating the economy by diverting useful industrial assets from landfills and operating a supply chain by overseeing the post-sale account activity of financial assets. The group operates in four segments namely Auction and Liquidation; Refurbishment and Resale; Brokerage and Specialty Lending. It generates maximum revenue from the Auction and Liquidation segment. The Auction and Liquidation segment, through HGP, operates as a global full-service auction, appraisal, and asset advisory firm, including the acquisition of turnkey manufacturing facilities and used industrial machinery and equipment.
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