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.
Pathward Financial's Sloan Ratio for the quarter that ended in Dec. 2023 was 11.23%.
As of Dec. 2023, Pathward Financial has a Sloan Ratio of 11.23%, indicating there is a warning stage of accrual build up.
Pathward Financial Sloan Ratio % Historical Data
The historical data trend for Pathward 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 Pathward Financial's Sloan Ratio %
For the Banks - Regional subindustry, Pathward 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.
Pathward Financial's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Pathward Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pathward Financial's Sloan Ratio % falls into.
Pathward 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.
Pathward Financial's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Pathward Financial's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 54.771 (Mar. 2023 ) + 45.096 (Jun. 2023 ) + 35.906 (Sep. 2023 ) + 27.657 (Dec. 2023 ) = $163.4 Mil.
Pathward Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 141.456 (Mar. 2023 ) + 4.82 (Jun. 2023 ) + 114.462 (Sep. 2023 ) + 22.444 (Dec. 2023 ) = $283.2 Mil.
Pathward Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -176.515 (Mar. 2023 ) + -489.902 (Jun. 2023 ) + -299.784 (Sep. 2023 ) + -43.623 (Dec. 2023 ) = $-1,009.8 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.
Pathward Financial (NAS:CASH) 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, Pathward Financial has a Sloan Ratio of 11.23%, indicating there is a warning stage of accrual build up.
Pathward Financial Sloan Ratio % Related Terms
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Pathward Financial (Pathward Financial) Business Description
Pathward Financial Inc is a unitary savings and loan holding company. It's a wholly-owned full-service banking subsidiary of Meta Financial, is both a community-oriented financial institution offering a variety of financial services to meet the needs of the communities it serves, and a payments company providing services on a nationwide basis. It operates through three reportable segments: Consumer, Commercial and Corporate Services/Other. The majority of the revenue is generated from Consumer segment.
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