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.
BayFirst Financial's Sloan Ratio for the quarter that ended in Mar. 2024 was 12.91%.
As of Mar. 2024, BayFirst Financial has a Sloan Ratio of 12.91%, indicating there is a warning stage of accrual build up.
BayFirst Financial Sloan Ratio % Historical Data
The historical data trend for BayFirst 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 BayFirst Financial's Sloan Ratio %
For the Banks - Regional subindustry, BayFirst 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.
BayFirst Financial's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, BayFirst Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where BayFirst Financial's Sloan Ratio % falls into.
BayFirst 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.
BayFirst Financial's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
BayFirst Financial's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1.385 (Jun. 2023 ) + 1.923 (Sep. 2023 ) + 1.655 (Dec. 2023 ) + 0.824 (Mar. 2024 ) = $5.79 Mil.
BayFirst Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 127.274 (Jun. 2023 ) + 135.064 (Sep. 2023 ) + 127.252 (Dec. 2023 ) + 123.535 (Mar. 2024 ) = $513.13 Mil.
BayFirst Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -171.204 (Jun. 2023 ) + -170.455 (Sep. 2023 ) + -162.723 (Dec. 2023 ) + -150.712 (Mar. 2024 ) = $-655.09 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.
BayFirst Financial (NAS:BAFN) 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, BayFirst Financial has a Sloan Ratio of 12.91%, indicating there is a warning stage of accrual build up.
BayFirst Financial Sloan Ratio % Related Terms
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BayFirst Financial (BayFirst Financial) Business Description
BayFirst Financial Corp is a one-bank holding company, it generates its revenue from interest on loans and the gain-on-sale income derived from the sale of loans into the secondary market. The company serves a broad spectrum of individuals, families, and small businesses, supported by national business lines in residential and SBA lending and technology platforms. The primary source of funding for its loans is deposits. BayFirst measures performance through net interest income after provision for loan losses, return on average assets, and return on average common equity, while maintaining appropriate regulatory leverage and risk-based capital ratios.
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