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.
Heritage Financial's Sloan Ratio for the quarter that ended in Dec. 2024 was 0.91%.
As of Dec. 2024, Heritage Financial has a Sloan Ratio of 0.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Heritage Financial Sloan Ratio % Historical Data
The historical data trend for Heritage Financial'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 Heritage Financial's Sloan Ratio %
For the Banks - Regional subindustry, Heritage Financial'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.
Heritage Financial's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Heritage Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Heritage Financial's Sloan Ratio % falls into.
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.
Heritage Financial's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Heritage Financial's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 5.748 (Mar. 2024 ) + 14.159 (Jun. 2024 ) + 11.423 (Sep. 2024 ) + 11.928 (Dec. 2024 ) = $43.3 Mil. Heritage Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 12.899 (Mar. 2024 ) + 6.791 (Jun. 2024 ) + 24.174 (Sep. 2024 ) + 20.619 (Dec. 2024 ) = $64.5 Mil. Heritage Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 33.466 (Mar. 2024 ) + -53.624 (Jun. 2024 ) + -21.752 (Sep. 2024 ) + -43.993 (Dec. 2024 ) = $-85.9 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.
Heritage Financial (NAS:HFWA) 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. 2024, Heritage Financial has a Sloan Ratio of 0.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Heritage Financial Sloan Ratio % Related Terms
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Heritage Financial Corp is a bank holding company. The company through its subsidiary provides commercial lending and deposit relationships with small businesses and their owners in its market areas and attracts deposits from the general public. It accepts various deposit products, such as noninterest demand accounts, money market accounts, savings accounts, and certificates of deposit. Besides, the Bank also makes real estate construction loans, land development loans, and consumer loans, and originates first mortgage loans on residential properties mainly located in its market area. Geographically, all the business activity functions through the region of the United States.
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