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. 2015, National Penn Bancshares has a Sloan Ratio of 0.73%, indicating the company is in the safe zone and there is no funny business with accruals.
National Penn Bancshares 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 National Penn Bancshares's Sloan Ratio %
For the Banks - Regional subindustry, National Penn Bancshares'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.
National Penn Bancshares's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, National Penn Bancshares's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where National Penn Bancshares's Sloan Ratio % falls into.
National Penn Bancshares 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.
National Penn Bancshares's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
National Penn Bancshares's Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was 26.727 (Mar. 2015 ) + 27.238 (Jun. 2015 ) + 27.876 (Sep. 2015 ) + 28.85 (Dec. 2015 ) = $110.7 Mil.
National Penn Bancshares's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 16.628 (Mar. 2015 ) + 39.788 (Jun. 2015 ) + 32.862 (Sep. 2015 ) + 33.211 (Dec. 2015 ) = $122.5 Mil.
National Penn Bancshares's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was -12.658 (Mar. 2015 ) + -27.991 (Jun. 2015 ) + 10.845 (Sep. 2015 ) + -52.33 (Dec. 2015 ) = $-82.1 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.
National Penn Bancshares (NAS:NPBC) 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. 2015, National Penn Bancshares has a Sloan Ratio of 0.73%, indicating the company is in the safe zone and there is no funny business with accruals.
National Penn Bancshares Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of National Penn Bancshares's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
National Penn Bancshares (National Penn Bancshares) Business Description
National Penn Bancshares Inc is a Pennsylvania business corporation incorporated in January 1982. The Company is a registered bank holding company. The Company provides financial services, through its subsidiary National Penn Bank. The Company through its subsidiaries is engaged in activities related to the business of banking. National Penn's financial services affiliates consist of National Penn Wealth Management, N.A., including its National Penn Investors Trust Company division; National Penn Capital Advisors, Inc.; Institutional Advisors, LLC; National Penn Insurance Services Group, Inc., including its Higgins Insurance and Caruso Benefits divisions. Commercial banking is its main business focus. Commercial banking services are provided to small and medium sized businesses with annual gross revenues generally between $1 million and $100 million located in its market areas. offer a wide range of products including short-term loans for seasonal and working capital purposes, term loans secured by real estate and other assets, loans for construction and expansion needs, revolving credit facilities, and a full array of cash management services, including remote deposit capture, disbursement, collection, investment and electronic banking services. Consumer banking offers deposit accounts, which include demand, NOW, money market, other checking and savings accounts, and certificates of deposit. It also offers consumer loan products such as installment loans, home equity loans, residential mortgage loans, education loans and credit cards. In addition, it offers automated teller services, safe deposit and night depository facilities and internet banking services, including on-line bill paying and mobile banking. In addition to generation of fee income through its commercial and consumer banking operations, including mortgage lending the Company has a number of specialized investment and insurance businesses to develop fee income and to serve specific markets. The Company also provides loans directly to consumers within its markets to finance personal residences, automobiles, college tuition, home improvements and other personal needs. The Company also makes indirect loans to customers for the purchase of both new and used vehicles. The majority of residential mortgages is conformed to FNMA and FHLMC underwriting criteria and is sold to secondary market investors. Other residential products such as jumbo mortgages are originated and typically held in its loan portfolio. The Company also provides home equity loans, home equity lines of credit and other consumer loans through its network of retail branch offices and its Private Banking division. The Company is subject to various federal and state statutes applicable to banks chartered in the United States, as well as regulations of the Office of the Comptroller of the Currency.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NPBC has been successfully added to your 