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AIB Group (DUB:A5G) Sloan Ratio % : 1.57% (As of Jun. 2024)


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What is AIB Group 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.

AIB Group's Sloan Ratio for the quarter that ended in Jun. 2024 was 1.57%.

As of Jun. 2024, AIB Group has a Sloan Ratio of 1.57%, indicating the company is in the safe zone and there is no funny business with accruals.


AIB Group Sloan Ratio % Historical Data

The historical data trend for AIB Group'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.

* Premium members only.

AIB Group Sloan Ratio % Chart

AIB Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.19 -13.19 -12.05 5.05 2.75

AIB Group Semi-Annual Data
Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.79 5.05 8.10 2.75 1.57

Competitive Comparison of AIB Group's Sloan Ratio %

For the Banks - Regional subindustry, AIB Group'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.


AIB Group's Sloan Ratio % Distribution in the Banks Industry

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

* The bar in red indicates where AIB Group's Sloan Ratio % falls into.



AIB Group 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.

AIB Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(2061--838
--850)/136349
=2.75%

AIB Group's Sloan Ratio for the quarter that ended in Jun. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2024 )
=(2315-1713
--1548)/136976
=1.57%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. AIB Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 1205 (Dec. 2023 ) + 1110 (Jun. 2024 ) = €2,315 Mil.
AIB Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 793 (Dec. 2023 ) + 920 (Jun. 2024 ) = €1,713 Mil.
AIB Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -636 (Dec. 2023 ) + -912 (Jun. 2024 ) = €-1,548 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.


AIB Group  (DUB:A5G) 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 Jun. 2024, AIB Group has a Sloan Ratio of 1.57%, indicating the company is in the safe zone and there is no funny business with accruals.


AIB Group Sloan Ratio % Related Terms

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AIB Group Business Description

Address
10 Molesworth Street, Dublin 2, IRL, D02 R126
AIB Group PLC is a banking services company. The company's operating segments are Retail Banking; Capital Markets; AIB UK and Group. It generates maximum revenue from the Retail Banking segment. Retail Banking segment comprises Homes and Consumer, SME and Financial Solutions Group (FSG) in a single integrated segment, focused on meeting the current, emerging and future needs of personal and SME customers. Geographically, it derives a majority of revenue from Ireland and also has a presence in the United Kingdom and the Rest of the World.

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