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.
NMBZ Holding's Sloan Ratio for the quarter that ended in Dec. 2023 was 35.81%.
Warning Sign:
When sloan ratio (35.81)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, NMBZ Holding has a Sloan Ratio of 35.81%, indicating earnings are more likely to be made up of accruals.
NMBZ Holding Sloan Ratio % Historical Data
The historical data trend for NMBZ Holding'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 NMBZ Holding's Sloan Ratio %
For the Banks - Regional subindustry, NMBZ Holding'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.
NMBZ Holding's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, NMBZ Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where NMBZ Holding's Sloan Ratio % falls into.
NMBZ Holding 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.
NMBZ Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
NMBZ Holding's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 605.418 (Jun. 2023 ) + 250.578 (Dec. 2023 ) = $856.00 Mil.
NMBZ Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 97.124 (Jun. 2023 ) + 257.765 (Dec. 2023 ) = $354.89 Mil.
NMBZ Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -656.7 (Jun. 2023 ) + -512.963 (Dec. 2023 ) = $-1,169.66 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.
NMBZ Holding (LSE:NMB) 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, NMBZ Holding has a Sloan Ratio of 35.81%, indicating earnings are more likely to be made up of accruals.
NMBZ Holding Sloan Ratio % Related Terms
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NMBZ Holding Ltd is an investment holding company. Through its subsidiary, it operates in five segments: Retail Banking, Corporate Banking, Digital Banking, Treasury, International Banking, and others. Its Retail Banking segment includes individual customer's deposits and consumer overdrafts, credit card facilities, and funds transfer facilities. The Digital Banking segment handles the Bank's Digital Banking products, including Card and POS Services. Its Corporate Banking segment includes loans and other credit facilities and deposit and current accounts for corporate and institutional customers. The Treasury segment includes money market investment, securities trading, accepting and discounting of instruments, and foreign currency trading.
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