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.
Wintrust Financial's Sloan Ratio for the quarter that ended in Dec. 2023 was 5.54%.
As of Dec. 2023, Wintrust Financial has a Sloan Ratio of 5.54%, indicating the company is in the safe zone and there is no funny business with accruals.
Wintrust Financial Sloan Ratio % Historical Data
The historical data trend for Wintrust Financial'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 Wintrust Financial's Sloan Ratio %
For the Banks - Regional subindustry, Wintrust Financial'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.
Wintrust Financial's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Wintrust Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Wintrust Financial's Sloan Ratio % falls into.
Wintrust Financial 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.
Wintrust Financial's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Wintrust Financial's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 180.198 (Mar. 2023 ) + 154.75 (Jun. 2023 ) + 164.198 (Sep. 2023 ) + 123.48 (Dec. 2023 ) = $623 Mil.
Wintrust Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 68.441 (Mar. 2023 ) + 339.751 (Jun. 2023 ) + 88.257 (Sep. 2023 ) + 247.927 (Dec. 2023 ) = $744 Mil.
Wintrust Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 114.42 (Mar. 2023 ) + -1346.036 (Jun. 2023 ) + -1396.475 (Sep. 2023 ) + -609.725 (Dec. 2023 ) = $-3,238 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.
Wintrust Financial (NAS:WTFC) 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, Wintrust Financial has a Sloan Ratio of 5.54%, indicating the company is in the safe zone and there is no funny business with accruals.
Wintrust Financial Sloan Ratio % Related Terms
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Wintrust Financial (Wintrust Financial) Business Description
Wintrust Financial Corp is a financial holding company operating in the Chicago metropolitan area and southern Wisconsin through its wholly-owned banking subsidiaries. Wintrust conducts its business through three segments: community banking, specialty finance, and wealth management. Among other services, the company provides community-oriented, personal, and commercial banking, as well as the origination and purchase of residential mortgages for sale into the secondary market. A majority of its banks are banks chartered by the state of Illinois with scores of locations. The company has historically grown through both de novo organization and acquisitions. A majority of its loan portfolio is commercial, mostly in real estate. A majority of Wintrust's net revenue is net interest income.
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