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, German American Bancorp has a Sloan Ratio of -0.79%, indicating the company is in the safe zone and there is no funny business with accruals.
German American Bancorp 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 German American Bancorp's Sloan Ratio %
For the Banks - Regional subindustry, German American Bancorp'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.
German American Bancorp's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, German American Bancorp's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where German American Bancorp's Sloan Ratio % falls into.
German American Bancorp 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.
German American Bancorp's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
German American Bancorp's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 20.807 (Mar. 2023 ) + 22.123 (Jun. 2023 ) + 21.451 (Sep. 2023 ) + 21.507 (Dec. 2023 ) = $85.9 Mil.
German American Bancorp's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 31.466 (Mar. 2023 ) + 21.775 (Jun. 2023 ) + 24.416 (Sep. 2023 ) + 29.577 (Dec. 2023 ) = $107.2 Mil.
German American Bancorp's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 145.028 (Mar. 2023 ) + -15.252 (Jun. 2023 ) + -40.138 (Sep. 2023 ) + -62.383 (Dec. 2023 ) = $27.3 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.
German American Bancorp (NAS:GABC) 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, German American Bancorp has a Sloan Ratio of -0.79%, indicating the company is in the safe zone and there is no funny business with accruals.
German American Bancorp Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of German American Bancorp's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
German American Bancorp (German American Bancorp) Business Description
German American Bancorp Inc is a bank holding company. The Company's lines of business include 1) Retail and commercial banking business which involves attracting deposits from the general public and using those funds to originate consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans. These core banking activities also include the sale of residential mortgage loans in the secondary market. 2) Wealth management services which involve providing trust, investment advisory, brokerage and retirement planning services to customers. 3) Insurance operations include the offering of a full range of personal and corporate property and casualty insurance products.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
GABC has been successfully added to your 