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.
Amana Bank's Sloan Ratio for the quarter that ended in Sep. 2024 was 2.57%.
As of Sep. 2024, Amana Bank has a Sloan Ratio of 2.57%, indicating the company is in the safe zone and there is no funny business with accruals.
Amana Bank Sloan Ratio % Historical Data
The historical data trend for Amana Bank'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 Amana Bank's Sloan Ratio %
For the Banks - Regional subindustry, Amana Bank'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.
Amana Bank's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Amana Bank's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Amana Bank's Sloan Ratio % falls into.
Amana Bank 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.
Amana Bank's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Amana Bank's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 495.318 (Dec. 2023 ) + 422.225 (Mar. 2024 ) + 341.196 (Jun. 2024 ) + 355.917 (Sep. 2024 ) = රු1,615 Mil.
Amana Bank's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 2820.495 (Dec. 2023 ) + -3145.798 (Mar. 2024 ) + 12423.946 (Jun. 2024 ) + -9908.026 (Sep. 2024 ) = රු2,191 Mil.
Amana Bank's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -10669.109 (Dec. 2023 ) + 1733.632 (Mar. 2024 ) + -7188.539 (Jun. 2024 ) + 11106.944 (Sep. 2024 ) = රු-5,017 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.
Amana Bank (COL:ABL.N0000) 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 Sep. 2024, Amana Bank has a Sloan Ratio of 2.57%, indicating the company is in the safe zone and there is no funny business with accruals.
Amana Bank Sloan Ratio % Related Terms
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Amana Bank PLC provides commercial banking services. Its services include accepting customer deposits, personal banking, lease financing, home, and property financing, advances against gold, resident and non-resident foreign currency operations. The reportable segment of the company is based on three operating segments. Consumer Banking segment includes individual customers' deposits and consumer financing including overdrafts, asset financing, and lease financing. The Business Banking segment, which is the key revenue driver, includes trade financing, overdraft, equipment, and machinery financing, and working capital financing and the Treasury segment includes placements of funds with other banks and financial institutions.
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