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. 2024, Itausa Investimentos ITAU has a Sloan Ratio of 6.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Itausa Investimentos ITAU 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 Itausa Investimentos ITAU's Sloan Ratio %
For the Conglomerates subindustry, Itausa Investimentos ITAU'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.
Itausa Investimentos ITAU's Sloan Ratio % Distribution in the Conglomerates Industry
For the Conglomerates industry and Industrials sector, Itausa Investimentos ITAU's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Itausa Investimentos ITAU's Sloan Ratio % falls into.
Itausa Investimentos ITAU 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.
Itausa Investimentos ITAU's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Itausa Investimentos ITAU's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 3475 (Mar. 2024 ) + 3762 (Jun. 2024 ) + 3819 (Sep. 2024 ) + 3722 (Dec. 2024 ) = R$14,778 Mil.
Itausa Investimentos ITAU's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -17 (Mar. 2024 ) + 260 (Jun. 2024 ) + 379 (Sep. 2024 ) + -9 (Dec. 2024 ) = R$613 Mil.
Itausa Investimentos ITAU's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 5530 (Mar. 2024 ) + -111 (Jun. 2024 ) + 1072 (Sep. 2024 ) + -102 (Dec. 2024 ) = R$6,389 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.
Itausa Investimentos ITAU (BSP:ITSA3) 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. 2024, Itausa Investimentos ITAU has a Sloan Ratio of 6.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Itausa Investimentos ITAU Sloan Ratio % Related Terms
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Itausa Investimentos ITAU SA is a Brazilian investment holding company. It has equity interests in the companies engaged in the financial, consumer goods, construction materials, sanitation, energy, and infrastructure sectors. Its portfolio consists of brands such as Itau Unibanco, Dexco, Alpargatas, CCR, Aegea Saneamento, Copa Energia and Nova Transportadora do Sudeste (NTS). The majority of the revenue for the company is generated from Itau Unibanco which is a banking institution that offers, directly or using its subsidiaries, a broad range of credit products and other financial services to a diversified individual and corporate client base in Brazil and abroad.
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