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. 2023, Van Lanschot Kempen NV has a Sloan Ratio of 1.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Van Lanschot Kempen NV 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 Van Lanschot Kempen NV's Sloan Ratio %
For the Banks - Regional subindustry, Van Lanschot Kempen NV'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.
Van Lanschot Kempen NV's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Van Lanschot Kempen NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Van Lanschot Kempen NV's Sloan Ratio % falls into.
Van Lanschot Kempen NV 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.
Van Lanschot Kempen NV'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.
Van Lanschot Kempen NV's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 51.794 (Jun. 2023 ) + 73.402 (Dec. 2023 ) = €125.2 Mil.
Van Lanschot Kempen NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -1350.679 (Jun. 2023 ) + 1640.927 (Dec. 2023 ) = €290.2 Mil.
Van Lanschot Kempen NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 401.309 (Jun. 2023 ) + -766.873 (Dec. 2023 ) = €-365.6 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.
Van Lanschot Kempen NV (XAMS:VLK) 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, Van Lanschot Kempen NV has a Sloan Ratio of 1.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Van Lanschot Kempen NV Sloan Ratio % Related Terms
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Van Lanschot Kempen NV (XAMS:VLK) Business Description
Van Lanschot Kempen NV is an independent wealth management bank operating primarily in the Netherlands. Its key areas of service include private banking, Evi, asset management, and merchant banking, which drive the vast majority of operating income. most of the bank's earning assets are loans and advances, a majority of which are mortgages. The bank seeks to differentiate itself from traditional competitors with its focus on niche markets and brand recognition. Private banking is the bank's largest core segment. Its private banking customers are mostly entrepreneurs, family businesses, business professionals, executives, and high-net-worth individuals. The most notable portion of the bank's corporate lending book is in the real estate industry.
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