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.
Security Federal's Sloan Ratio for the quarter that ended in Dec. 2023 was 3.86%.
As of Dec. 2023, Security Federal has a Sloan Ratio of 3.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Security Federal Sloan Ratio % Historical Data
The historical data trend for Security Federal'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 Security Federal's Sloan Ratio %
For the Banks - Regional subindustry, Security Federal'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.
Security Federal's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Security Federal's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Security Federal's Sloan Ratio % falls into.
Security Federal 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.
Security Federal's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Security Federal's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 2.674 (Mar. 2023 ) + 1.778 (Jun. 2023 ) + 2.122 (Sep. 2023 ) + 3.616 (Dec. 2023 ) = $10.19 Mil.
Security Federal's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 5.964 (Mar. 2023 ) + 3.825 (Jun. 2023 ) + 4.766 (Sep. 2023 ) + -5.7 (Dec. 2023 ) = $8.86 Mil.
Security Federal's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -25.445 (Mar. 2023 ) + -19.65 (Jun. 2023 ) + -4.76 (Sep. 2023 ) + -8.629 (Dec. 2023 ) = $-58.48 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.
Security Federal (OTCPK:SFDL) 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, Security Federal has a Sloan Ratio of 3.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Security Federal Sloan Ratio % Related Terms
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Security Federal (Security Federal) Business Description
Security Federal Corp and its subsidiaries are involved in the business of providing commercial and personal banking services as well as auto, business, home, and health insurance. The primary business of the company is to accept deposits from the general public and originate commercial real estate loans, commercial business loans, consumer loans as well as mortgage loans to buy or refinance one-to-four family residential real estate. It also originates construction loans and loans for the acquisition, development, and construction of residential subdivisions and commercial projects. The bank also operates Security federal trust and investments that offer trust, financial planning, and financial management services.
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