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. 2024, Svenska Handelsbanken AB has a Sloan Ratio of -2.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Svenska Handelsbanken AB 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 Svenska Handelsbanken AB's Sloan Ratio %
For the Banks - Diversified subindustry, Svenska Handelsbanken AB'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.
Svenska Handelsbanken AB's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Svenska Handelsbanken AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Svenska Handelsbanken AB's Sloan Ratio % falls into.
Svenska Handelsbanken AB 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.
Svenska Handelsbanken AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Svenska Handelsbanken AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 659.572 (Jun. 2023 ) + 717.198 (Sep. 2023 ) + 705.818 (Dec. 2023 ) + 634.215 (Mar. 2024 ) = $2,717 Mil.
Svenska Handelsbanken AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 3287.647 (Jun. 2023 ) + -2282.856 (Sep. 2023 ) + 1771.272 (Dec. 2023 ) + 9837.484 (Mar. 2024 ) = $12,614 Mil.
Svenska Handelsbanken AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -30.179 (Jun. 2023 ) + -29.951 (Sep. 2023 ) + -42.603 (Dec. 2023 ) + -36.019 (Mar. 2024 ) = $-139 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.
Svenska Handelsbanken AB (OTCPK:SVNLY) 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. 2024, Svenska Handelsbanken AB has a Sloan Ratio of -2.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Svenska Handelsbanken AB Sloan Ratio % Related Terms
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Svenska Handelsbanken AB (Svenska Handelsbanken AB) Business Description
Handelsbanken is one of the largest Swedish banks with significant exposure to the Swedish mortgage market; about 44% of total loans are tied to the Swedish real estate market. Outside of Sweden, the bank operates primarily in the U.K. and Netherlands. Handelsbanken generates about three fourths of its income through its interest spread-based business, including mortgages, household loans, and corporate loans to large and small enterprises. The bank increasingly offers asset-management, mutual fund and private banking services to its clients.
Svenska Handelsbanken AB (Svenska Handelsbanken AB) Headlines
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