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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. 2018, Highlands Bankshares (WV) has a Sloan Ratio of 1.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Highlands Bankshares (WV) (OTCPK:HBSI) 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. 2018, Highlands Bankshares (WV) has a Sloan Ratio of 1.67%, indicating the company is in the safe zone and there is no funny business with accruals.
Highlands Bankshares (WV) Sloan Ratio % Related Terms
Highlands Bankshares (WV) 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.
HBSI vs LUMB, HLFN, BSPA: Sloan Ratio % Comparison
For the Banks - Regional subindustry, Highlands Bankshares (WV)'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.
Highlands Bankshares (WV) Sloan Ratio % vs Banks Industry
For the Banks industry and Financial Services sector, Highlands Bankshares (WV)'s Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Highlands Bankshares (WV)'s Sloan Ratio % falls into.
Highlands Bankshares (WV) 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.
Highlands Bankshares (WV)'s Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
* 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.
Highlands Bankshares (WV) (HBSI) has a Sloan Ratio % of 1.67% as of Dec. 2018. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Highlands Bankshares (WV) and its competitors.
Is Highlands Bankshares (WV)'s Sloan Ratio % too high?
Highlands Bankshares (WV)'s current Sloan Ratio % is 1.67%. Overall, Highlands Bankshares (WV) has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Highlands Bankshares (WV)'s Sloan Ratio % compare to LUMB and HLFN?
Highlands Bankshares (WV)'s Sloan Ratio % of 1.67% can be compared against companies in the Banks industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Banks company?
A good Sloan Ratio % depends on the Banks industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Highlands Bankshares (WV) and its competitors. Highlands Bankshares (WV)'s current Sloan Ratio % is 1.67%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Highlands Bankshares (WV) stock overvalued right now?
Highlands Bankshares (WV) (HBSI) has a current Sloan Ratio % of 1.67%. The current Sloan Ratio % is 1.67%. Highlands Bankshares (WV)'s overall GF Score™ is 12/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Highlands Bankshares (WV) (HBSI), the current Sloan Ratio % is 1.67% as of Dec. 2018. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Highlands Bankshares Inc (WV) operates as a holding company, which engages in the provision of financial and banking services through its subsidiaries. It offers a variety of services, including commercial and individual demand and time deposit accounts, commercial and individual loans, drive-in banking services, and automatic teller machine banking. The banks provide services to customers located mainly in Grant, Hardy, Hampshire, Mineral, Pendleton, Randolph, and Tucker counties of West Virginia, including the towns of Petersburg, Keyser, Moorefield, Davis, and Wardensville.
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