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 Dec. 2021, Credito Valtellinese SpA has a Sloan Ratio of -1.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Credito Valtellinese SpA 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 Credito Valtellinese SpA's Sloan Ratio %
For the Banks - Regional subindustry, Credito Valtellinese SpA'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.
Credito Valtellinese SpA's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Credito Valtellinese SpA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Credito Valtellinese SpA's Sloan Ratio % falls into.
Credito Valtellinese SpA 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.
Credito Valtellinese SpA's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Credito Valtellinese SpA's Net Income for the trailing twelve months (TTM) ended in Dec. 2021 was 48.622 (Jun. 2021 ) + -310.736 (Dec. 2021 ) = $-262.1 Mil.
Credito Valtellinese SpA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2021 was -19.842 (Jun. 2021 ) + 46.113 (Dec. 2021 ) = $26.3 Mil.
Credito Valtellinese SpA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2021 was 12.254 (Jun. 2021 ) + 0.78 (Dec. 2021 ) = $13.0 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.
Credito Valtellinese SpA (OTCPK:BPCVF) 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. 2021, Credito Valtellinese SpA has a Sloan Ratio of -1.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Credito Valtellinese SpA Sloan Ratio % Related Terms
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Credito Valtellinese SpA (Credito Valtellinese SpA) Business Description
Credito Valtellinese SpA is a banking group operating in certain regions of Italy, Lombardia. The bank's customers include households, small to midsize enterprises, artisans, and professionals. Its network model assigns portions of its market to various retail territorial banks, and provides them with ongoing support through specialized finance and special-purpose companies, mostly through insurance services. The majority of the bank's net revenue comprises net interest income, followed by net fee and commission income. The bank's earning assets are mostly loans and receivables due from customers.
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