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.
Allam Bank BSC's Sloan Ratio for the quarter that ended in Mar. 2026 was 3.14%.
As of Mar. 2026, Allam Bank BSC has a Sloan Ratio of 3.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Allam Bank BSC (BAH:SALAM) 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. 2026, Allam Bank BSC has a Sloan Ratio of 3.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Allam Bank BSC Sloan Ratio % Related Terms
Allam Bank BSC Sloan Ratio % Historical Data
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The historical data trend for Allam Bank BSC'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.
For the Banks - Regional subindustry, Allam Bank BSC'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.
Allam Bank BSC Sloan Ratio % vs Banks Industry
For the Banks industry and Financial Services sector, Allam Bank BSC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Allam Bank BSC's Sloan Ratio % falls into.
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.
Allam Bank BSC's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
Allam Bank BSC's Net Income for the trailing twelve months (TTM) ended in Mar. 2026 was 18.778 (Jun. 2025 ) + 20.819 (Sep. 2025 ) + 18.646 (Dec. 2025 ) + 23.13 (Mar. 2026 ) = BHD81.4 Mil.
Allam Bank BSC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2026 was 158.134 (Jun. 2025 ) + 76.111 (Sep. 2025 ) + -138.59 (Dec. 2025 ) + 255.924 (Mar. 2026 ) = BHD351.6 Mil.
Allam Bank BSC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2026 was -270.409 (Jun. 2025 ) + -53.09 (Sep. 2025 ) + 11.845 (Dec. 2025 ) + -225.475 (Mar. 2026 ) = BHD-537.1 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.
Allam Bank BSC (BAH:SALAM) has a Sloan Ratio % of 3.14% as of Mar. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Allam Bank BSC and its competitors.
Is Allam Bank BSC's Sloan Ratio % too high?
Allam Bank BSC's current Sloan Ratio % is 3.14%. Overall, Allam Bank BSC has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Allam Bank BSC's Sloan Ratio % compare to PNC and USB?
Allam Bank BSC's Sloan Ratio % of 3.14% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Banks company?
A good Sloan Ratio % depends on the Banks industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Allam Bank BSC and its competitors. Allam Bank BSC's current Sloan Ratio % is 3.14%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allam Bank BSC stock overvalued right now?
Based on GuruFocus' analysis, Allam Bank BSC (BAH:SALAM) is currently considered Modestly Undervalued. The stock's GF Value™ is BHD0.28, compared to a current price of BHD0.21 — trading 24.6% below its estimated fair value. The current Sloan Ratio % is 3.14%. Allam Bank BSC's overall GF Score™ is 60/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Allam Bank BSC (BAH:SALAM), the current Sloan Ratio % is 3.14% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Allam Bank BSC (BAH:SALAM) Overvalued in 2026?
Based on GuruFocus' analysis, Allam Bank BSC stock appears to be undervalued.
The current stock price of BHD0.21 is trading 24.6% below its estimated GF Value™ of BHD0.28.
GuruFocus considers Allam Bank BSC to be Modestly Undervalued.
Key valuation signals for BAH:SALAM:
Sloan Ratio %: 3.14%
GF Value™: BHD0.28 vs. price of BHD0.21 (24.6% below fair value)
No single metric tells the full story. See the BAH:SALAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Salam Bank BSC is a banking corporation operating in Bahrain. It provides various Islamic banking products and services in the Kingdom of Bahrain. The company offers money market, trading, and treasury services, including short-term commodities, managing portfolios, and serving clients with a range of investment products, funds, and alternative investments. Besides, it also manages the un-deployed capital of the company by investing it in high-quality financial instruments. The company's reportable segments namely Banking, Treasury, Takaful and Investments. It generates maximum revenue from the Banking segment.
60GF Score
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