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.
As of Dec. 2022, Columbia Banking System has a Sloan Ratio of 1.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Columbia Banking System Sloan Ratio % Historical Data
* 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 Columbia Banking System's Sloan Ratio %
For the Banks - Regional subindustry, Columbia Banking System'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.
Columbia Banking System's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Columbia Banking System's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Columbia Banking System's Sloan Ratio % falls into.
Columbia Banking System 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.
Columbia Banking System's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Columbia Banking System's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was 57.522 (Mar. 2022 ) + 58.808 (Jun. 2022 ) + 64.942 (Sep. 2022 ) + 68.906 (Dec. 2022 ) = $250.2 Mil.
Columbia Banking System's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2022 was 62.376 (Mar. 2022 ) + 99.187 (Jun. 2022 ) + 62.154 (Sep. 2022 ) + 76.967 (Dec. 2022 ) = $300.7 Mil.
Columbia Banking System's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2022 was -135.233 (Mar. 2022 ) + -318.015 (Jun. 2022 ) + -106.249 (Sep. 2022 ) + 163.807 (Dec. 2022 ) = $-395.7 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.
Columbia Banking System (NAS:COLB) 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. 2022, Columbia Banking System has a Sloan Ratio of 1.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Columbia Banking System Sloan Ratio % Related Terms
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Columbia Banking System (Columbia Banking System) Business Description
Columbia Banking System Inc is a registered bank holding company. The company operates through its wholly-owned banking subsidiary, Columbia State Bank. The company provides a full range of banking services to small and midsize businesses, professionals, and individuals throughout Washington, Oregon, and Idaho. The bank has historically grown through a combination of organic growth and acquisitions. The bank's strategy s to provide our customers with the financial sophistication and product depth of a regional banking company. Its loan portfolio is diversified but primarily concentrated in commercial real estate and commercial business loans. A majority of the bank's net revenue is net interest income.
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