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. 2012, Chino Commercial Bancorp has a Sloan Ratio of 2.48%, indicating the company is in the safe zone and there is no funny business with accruals.
Chino Commercial Bancorp 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 Chino Commercial Bancorp's Sloan Ratio %
For the Banks - Regional subindustry, Chino Commercial Bancorp'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.
Chino Commercial Bancorp's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Chino Commercial Bancorp's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chino Commercial Bancorp's Sloan Ratio % falls into.
Chino Commercial Bancorp 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.
Chino Commercial Bancorp's Sloan Ratio for the fiscal year that ended in Dec. 2012 is calculated as
Chino Commercial Bancorp's Net Income for the trailing twelve months (TTM) ended in Dec. 2012 was 0.204 (Mar. 2012 ) + 0.124 (Jun. 2012 ) + 0.154 (Sep. 2012 ) + 0.108 (Dec. 2012 ) = $0.59 Mil.
Chino Commercial Bancorp's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2012 was 0.484 (Mar. 2012 ) + 0.299 (Jun. 2012 ) + 0.087 (Sep. 2012 ) + 0.285 (Dec. 2012 ) = $1.16 Mil.
Chino Commercial Bancorp's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2012 was 2.822 (Mar. 2012 ) + -0.197 (Jun. 2012 ) + -2.277 (Sep. 2012 ) + -3.756 (Dec. 2012 ) = $-3.41 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.
Chino Commercial Bancorp (OTCPK:CCBC) 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. 2012, Chino Commercial Bancorp has a Sloan Ratio of 2.48%, indicating the company is in the safe zone and there is no funny business with accruals.
Chino Commercial Bancorp Sloan Ratio % Related Terms
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Chino Commercial Bancorp (Chino Commercial Bancorp) Business Description
Chino Commercial Bancorp is a community-oriented bank, the bank offers a wide array of personal, consumer and commercial services. The operating segments are One-to-Four Residential, Residential Income, Construction, Commercial Real Estate, Commercial and Industrial and Other. It provides a broad range of deposit instruments and general banking services, including checking, savings, and money market accounts; certificate of deposit for both business and personal accounts; telebanking (banking by phone); and courier services. The bank also provides a wide variety of lending products for both businesses and consumers.
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