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.
Banco do Brasil BB Brasil's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.02%.
As of Dec. 2023, Banco do Brasil BB Brasil has a Sloan Ratio of -0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Banco do Brasil BB Brasil Sloan Ratio % Historical Data
The historical data trend for Banco do Brasil BB Brasil'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.
For the Banks - Regional subindustry, Banco do Brasil BB Brasil'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.
Banco do Brasil BB Brasil Sloan Ratio % Distribution
For the Banks industry and Financial Services sector, Banco do Brasil BB Brasil's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Banco do Brasil BB Brasil's Sloan Ratio % falls into.
Banco do Brasil BB Brasil 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.
Banco do Brasil BB Brasil's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Banco do Brasil BB Brasil's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1575.585 (Mar. 2023 ) + 1721.218 (Jun. 2023 ) + 1626.958 (Sep. 2023 ) + 2189.842 (Dec. 2023 ) = $7,114 Mil.
Banco do Brasil BB Brasil's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -2522.088 (Mar. 2023 ) + 2030.888 (Jun. 2023 ) + -2447.742 (Sep. 2023 ) + 5853.67 (Dec. 2023 ) = $2,915 Mil.
Banco do Brasil BB Brasil's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 2508.862 (Mar. 2023 ) + 3085.21 (Jun. 2023 ) + 2494.807 (Sep. 2023 ) + -3794.768 (Dec. 2023 ) = $4,294 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.
Banco do Brasil BB Brasil (OTCPK:BDORY) 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, Banco do Brasil BB Brasil has a Sloan Ratio of -0.02%, indicating the company is in the safe zone and there is no funny business with accruals.
Banco do Brasil BB Brasil Sloan Ratio % Related Terms
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Banco do Brasil BB Brasil (Banco do Brasil BB Brasil) Business Description
Banco do Brasil SA BB Brasil is a Brazilian financial services company present in several countries. The business segments are Banking, Investments, Fund Management, Insurance, pension fund & capitalization, Payment methods, and Other segments. Banco do Brasil serves retail clients (small and midsize enterprises and individuals), wholesale clients (corporations), and public institutions. The bank has subsidiaries/ business units/offices in Argentina, Dubai, the United Kingdom, Spain, Mexico, the United States, France, China, and Japan, among other locations. The products and services portfolio includes accounts, Loans, cards, financing, and others.
Banco do Brasil BB Brasil (Banco do Brasil BB Brasil) Headlines
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