What is First Niagara Financial Group Sloan Ratio %?
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 Mar. 2016, First Niagara Financial Group has a Sloan Ratio of 3.20%, indicating the company is in the safe zone and there is no funny business with accruals.
First Niagara Financial Group 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 First Niagara Financial Group's Sloan Ratio %
For the Banks - Regional subindustry, First Niagara Financial Group'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.
First Niagara Financial Group's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, First Niagara Financial Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where First Niagara Financial Group's Sloan Ratio % falls into.
First Niagara Financial Group 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.
First Niagara Financial Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2016 was 61 (Jun. 2015 ) + 60 (Sep. 2015 ) + 51 (Dec. 2015 ) + 48 (Mar. 2016 ) = $220 Mil.
First Niagara Financial Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 173 (Jun. 2015 ) + 95 (Sep. 2015 ) + 51 (Dec. 2015 ) + 84 (Mar. 2016 ) = $403 Mil.
First Niagara Financial Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 was -181 (Jun. 2015 ) + -447 (Sep. 2015 ) + -432 (Dec. 2015 ) + -405 (Mar. 2016 ) = $-1,465 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.
First Niagara Financial Group (NAS:FNFG) 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 Mar. 2016, First Niagara Financial Group has a Sloan Ratio of 3.20%, indicating the company is in the safe zone and there is no funny business with accruals.
First Niagara Financial Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of First Niagara Financial Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
First Niagara Financial Group (First Niagara Financial Group) Business Description
First Niagara Financial Group Inc was organized in April, 1998 in Delaware. It provides a range of retail and commercial banking as well as other financial services through its wholly-owned, federally chartered savings bank subsidiary, First Niagara Bank. The Company has identified two business segments, banking and financial services. The Company's financial services activities consist of insurance and employee benefits consulting services. All of its other activities are considered banking. It provides its retail consumer and business customers with banking services including residential and commercial real estate loans, commercial business loans and leases, consumer loans, wealth management products, as well as retail and commercial deposit products. Additionally, it offers insurance and employee benefits consulting services through a wholly-owned subsidiary of the bank. The Company's subsidiaries provide financial services to individuals and small and medium size companies in its market areas. Its activity has been the origination of commercial real estate and business loans, leases, and residential mortgages to customers located within its market areas. Consistent with its long-term customer relationship development, it generally retains the servicing rights on residential mortgage loans that it sells which results in monthly service fee income to it. The Company also originates and retains in its various types of home equity and consumer loan products. It originates commercial real estate loans secured predominantly by first liens on apartment houses, office buildings, shopping centers, and industrial and warehouse properties. Commercial business loans includes business term loans, letters of credit, and lines-of-credit issued to small and medium size companies in its market areas, some of which are secured in part by additional owner occupied real estate. The Company's bi-weekly mortgages feature an accelerated repayment schedule and are linked to a deposit account to facilitate payments. It offers fixed-rate, fixed-term, monthly and bi-weekly home equity loans, and prime-based home equity lines of credit in its market areas. It offers a variety of fixed-rate installment and variable rate lines-of-credit consumer loans, including indirect mobile home loans as well as personal secured and unsecured loans. The Company's specialized lending consists of commercial leases and insurance premium financing. It offers insurance products and consulting services to help both its retail and commercial customers achieve their financial goals. The Company is subject to extensive federal and state regulation and supervision. Banking regulations are intended to protect depositors' funds, federal deposit insurance funds and the financial system as a whole, not security holders.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FNFG has been successfully added to your 