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 Sep. 2024, PT Allo Bank Indonesia Tbk has a Sloan Ratio of 3.55%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Allo Bank Indonesia Tbk 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.
Competitive Comparison of PT Allo Bank Indonesia Tbk's Sloan Ratio %
For the Banks - Regional subindustry, PT Allo Bank Indonesia Tbk'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.
PT Allo Bank Indonesia Tbk's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, PT Allo Bank Indonesia Tbk's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PT Allo Bank Indonesia Tbk's Sloan Ratio % falls into.
PT Allo Bank Indonesia Tbk 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.
PT Allo Bank Indonesia Tbk's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 105747.693 (Dec. 2023 ) + 111486.726 (Mar. 2024 ) + 89107.543 (Jun. 2024 ) + 101992.326 (Sep. 2024 ) = Rp408,334 Mil.
PT Allo Bank Indonesia Tbk's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 694930.417 (Dec. 2023 ) + 595465.884 (Mar. 2024 ) + -327513.151 (Jun. 2024 ) + 1158770.467 (Sep. 2024 ) = Rp2,121,654 Mil.
PT Allo Bank Indonesia Tbk's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -46198.05 (Dec. 2023 ) + -786538.328 (Mar. 2024 ) + -136930.983 (Jun. 2024 ) + -1242404.847 (Sep. 2024 ) = Rp-2,212,072 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.
PT Allo Bank Indonesia Tbk (ISX:BBHI) 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 Sep. 2024, PT Allo Bank Indonesia Tbk has a Sloan Ratio of 3.55%, indicating the company is in the safe zone and there is no funny business with accruals.
PT Allo Bank Indonesia Tbk Sloan Ratio % Related Terms
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PT Allo Bank Indonesia Tbk is engaged in providing banking products. Its products and services are Electronic money products with Allo Pay and Allo Pay+ branding, Savings products include Allo Prime and Allo Grow, Time Deposits, Digital credit with PayLater and Instant Cash branding, Fund Transfer Services, cardless cash withdrawals, electronic money top-ups, QRIS payments, biller payment services and loyalty programs in the form of Membership, Points, and Coupons (MPC). The company operates through the Corporate segment, Retail segment, and Treasury segment. Its Corporate segment generates maximum revenue for the company.
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