Dearborn Bancorp (Dearborn Bancorp) Sloan Ratio % : -10.87% (As of Mar. 2011)

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What is Dearborn Bancorp Sloan Ratio %?

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.

Dearborn Bancorp's Sloan Ratio for the quarter that ended in Mar. 2011 was -10.87%.

As of Mar. 2011, Dearborn Bancorp has a Sloan Ratio of -10.87%, indicating there is a warning stage of accrual build up.

Dearborn Bancorp Sloan Ratio % Historical Data

The historical data trend for Dearborn Bancorp'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.

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Dearborn Bancorp Sloan Ratio % Chart

Dearborn Bancorp Annual Data

Trend

Dec01

Dec02

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Sloan Ratio %

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10.16

5.89

2.96

-16.19

-9.45

Dearborn Bancorp Quarterly Data
	Sep06	Dec06	Mar07	Jun07	Sep07	Dec07	Mar08	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11
Sloan Ratio %	Get a 7-Day Free Trial															-9.12	-6.74	-9.45	-10.87	-

Competitive Comparison of Dearborn Bancorp's Sloan Ratio %

For the Banks - Regional subindustry, Dearborn 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.

Dearborn Bancorp's Sloan Ratio % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Dearborn Bancorp's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Dearborn Bancorp's Sloan Ratio % falls into.

Dearborn 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.

Dearborn Bancorp's Sloan Ratio for the fiscal year that ended in Dec. 2010 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2010 )	-	Cash Flow from Operations (A: Dec. 2010 )
	-	Cash Flow from Investing (A: Dec. 2010 ))	/	Total Assets (A: Dec. 2010 )
	=	(-14.249	-	12.143
	-	60.128)	/	915.684
	=	-9.45%

Dearborn Bancorp's Sloan Ratio for the quarter that ended in Mar. 2011 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Mar. 2011 )
	=	(-15.223	-	18.488
	-	63.815)	/	896.994
	=	-10.87%

Dearborn Bancorp's Net Income for the trailing twelve months (TTM) ended in Mar. 2011 was -13.629 (Jun. 2010 ) + 0.631 (Sep. 2010 ) + -2.379 (Dec. 2010 ) + 0.154 (Mar. 2011 ) = $-15.22 Mil.
Dearborn Bancorp's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2011 was 2.453 (Jun. 2010 ) + 3.679 (Sep. 2010 ) + 0.987 (Dec. 2010 ) + 11.369 (Mar. 2011 ) = $18.49 Mil.
Dearborn Bancorp's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2011 was 17.099 (Jun. 2010 ) + 17.857 (Sep. 2010 ) + 12.697 (Dec. 2010 ) + 16.162 (Mar. 2011 ) = $63.82 Mil.

Dearborn Bancorp (OTCPK:DEAR) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2011, Dearborn Bancorp has a Sloan Ratio of -10.87%, indicating there is a warning stage of accrual build up.

Dearborn Bancorp Sloan Ratio % Related Terms

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