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.
DFCC Bank's Sloan Ratio for the quarter that ended in Mar. 2024 was -4.41%.
As of Mar. 2024, DFCC Bank has a Sloan Ratio of -4.41%, indicating the company is in the safe zone and there is no funny business with accruals.
DFCC Bank Sloan Ratio % Historical Data
The historical data trend for DFCC 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 DFCC Bank's Sloan Ratio %
For the Banks - Regional subindustry, DFCC 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.
DFCC Bank's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, DFCC Bank's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where DFCC Bank's Sloan Ratio % falls into.
DFCC 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.
DFCC Bank's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
DFCC Bank's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1823.733 (Jun. 2023 ) + 3095.592 (Sep. 2023 ) + 1551.505 (Dec. 2023 ) + 3791.221 (Mar. 2024 ) = රු10,262 Mil.
DFCC Bank's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 11110.384 (Jun. 2023 ) + 7758.685 (Sep. 2023 ) + 34674.059 (Dec. 2023 ) + 20430.534 (Mar. 2024 ) = රු73,974 Mil.
DFCC Bank's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -11736.733 (Jun. 2023 ) + 11878.426 (Sep. 2023 ) + -56103.804 (Dec. 2023 ) + 19775.179 (Mar. 2024 ) = රු-36,187 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.
DFCC Bank (COL:DFCC.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 Mar. 2024, DFCC Bank has a Sloan Ratio of -4.41%, indicating the company is in the safe zone and there is no funny business with accruals.
DFCC Bank Sloan Ratio % Related Terms
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DFCC Bank PLC is a development bank operating along with its subsidiary and venture company in Sri Lanka that operates in four segments; Corporate Banking includes Loans deposits and other transactions and balances with corporate customers, Retail Banking includes Loans, deposits, and other transactions and balances with retail customers, The Treasury segment includes Funding and centralized risk management activities through borrowings, issues of debt securities, use of derivatives for risk management purposes and investing in short-term placements and corporate and government debt securities, and Other segment includes Revenue and expenses attributable to the incorporated business segments of industrial estate management, unit trust management, stock brokering, and consultancy services.
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