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.
B. Riley Financial's Sloan Ratio for the quarter that ended in Dec. 2023 was -7.01%.
As of Dec. 2023, B. Riley Financial has a Sloan Ratio of -7.01%, indicating the company is in the safe zone and there is no funny business with accruals.
B. Riley Financial Sloan Ratio % Historical Data
The historical data trend for B. Riley Financial'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 B. Riley Financial's Sloan Ratio %
For the Financial Conglomerates subindustry, B. Riley Financial'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.
B. Riley Financial's Sloan Ratio % Distribution in the Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, B. Riley Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where B. Riley Financial's Sloan Ratio % falls into.
B. Riley Financial 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.
B. Riley Financial's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
B. Riley Financial's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 17.155 (Mar. 2023 ) + 46.381 (Jun. 2023 ) + -73.823 (Sep. 2023 ) + -89.623 (Dec. 2023 ) = $-100 Mil.
B. Riley Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 52.617 (Mar. 2023 ) + 24.488 (Jun. 2023 ) + -118.062 (Sep. 2023 ) + 65.459 (Dec. 2023 ) = $25 Mil.
B. Riley Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -57.164 (Mar. 2023 ) + 273.483 (Jun. 2023 ) + 96.635 (Sep. 2023 ) + -11.78 (Dec. 2023 ) = $301 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.
B. Riley Financial (NAS:RILY) 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, B. Riley Financial has a Sloan Ratio of -7.01%, indicating the company is in the safe zone and there is no funny business with accruals.
B. Riley Financial Sloan Ratio % Related Terms
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B. Riley Financial (B. Riley Financial) Business Description
B. Riley Financial Inc is a diversified financial services company. The company through its subsidiaries offers investment banking and financial services to corporate, institutional and high net worth clients and also asset disposition, valuation and appraisal and capital advisory services to retail, wholesale, institutional, lenders, capital providers, private equity investors, and professional services firms in United States, Canada, and Europe. It also provides internet access and subscription services. The reportable operating segments of the company include Capital Markets, Wealth Management, Financial Consulting, Auction and Liquidation, Communications, and Consumer segment.
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