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.
Republic Bancorp's Sloan Ratio for the quarter that ended in Dec. 2023 was 7.56%.
As of Dec. 2023, Republic Bancorp has a Sloan Ratio of 7.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Republic Bancorp Sloan Ratio % Historical Data
The historical data trend for Republic Bancorp'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 Republic Bancorp's Sloan Ratio %
For the Banks - Regional subindustry, Republic 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.
Republic Bancorp's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Republic Bancorp's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Republic Bancorp's Sloan Ratio % falls into.
Republic 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.
Republic Bancorp's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Republic Bancorp's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 28.092 (Mar. 2023 ) + 21.052 (Jun. 2023 ) + 21.571 (Sep. 2023 ) + 19.659 (Dec. 2023 ) = $90.4 Mil.
Republic Bancorp's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 70.736 (Mar. 2023 ) + -5.843 (Jun. 2023 ) + 21.361 (Sep. 2023 ) + 22.277 (Dec. 2023 ) = $108.5 Mil.
Republic Bancorp's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -99.145 (Mar. 2023 ) + -286.881 (Jun. 2023 ) + -25.195 (Sep. 2023 ) + -105.73 (Dec. 2023 ) = $-517.0 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.
Republic Bancorp (NAS:RBCAA) 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, Republic Bancorp has a Sloan Ratio of 7.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Republic Bancorp Sloan Ratio % Related Terms
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Republic Bancorp (Republic Bancorp) Business Description
Republic Bancorp Inc operates as a financial institution that provides both traditional and non-traditional banking products through five reportable segments. It has traditional banking, warehouse, mortgage banking, Tax Refund Solutions (TRS), and Republic Credit Solutions (RCS) business segments. The business activities of these segments include retail mortgage lending, commercial lending, construction and land development lending, internet lending, correspondent lending, and indirect lending and also private banking, treasury management services, internet, and mobile banking, bank acquisitions, short-term revolving credit facilities, fixed-term residential real estate loans and receipt and payment of federal and state tax refund products under the TRS division.
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