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.
Pohjola Pankki Oyj's Sloan Ratio for the quarter that ended in Mar. 2016 was 0.45%.
As of Mar. 2016, Pohjola Pankki Oyj has a Sloan Ratio of 0.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Pohjola Pankki Oyj Sloan Ratio % Historical Data
The historical data trend for Pohjola Pankki Oyj'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 Pohjola Pankki Oyj's Sloan Ratio %
For the Banks - Regional subindustry, Pohjola Pankki Oyj'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.
Pohjola Pankki Oyj's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Pohjola Pankki Oyj's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pohjola Pankki Oyj's Sloan Ratio % falls into.
Pohjola Pankki Oyj 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.
Pohjola Pankki Oyj's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Pohjola Pankki Oyj's Net Income for the trailing twelve months (TTM) ended in Mar. 2016 was 163 (Jun. 2015 ) + 134 (Sep. 2015 ) + 92 (Dec. 2015 ) + 89 (Mar. 2016 ) = €478 Mil.
Pohjola Pankki Oyj's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was -708 (Jun. 2015 ) + 775 (Sep. 2015 ) + 2795 (Dec. 2015 ) + -2610 (Mar. 2016 ) = €252 Mil.
Pohjola Pankki Oyj's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 was -17 (Jun. 2015 ) + 7 (Sep. 2015 ) + -24 (Dec. 2015 ) + -7 (Mar. 2016 ) = €-41 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.
Pohjola Pankki Oyj (LTS:0ICL) 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 Mar. 2016, Pohjola Pankki Oyj has a Sloan Ratio of 0.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Pohjola Pankki Oyj Sloan Ratio % Related Terms
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Pohjola Pankki Oyj (LTS:0ICL) Business Description
Pohjola Pankki Oyj, provides banking, non-life insurance and wealth management services. It serves businesses, institutions and private individuals and provides banking and insurance services to customers while supporting corporate customers' business.. The Company operates through the following three business segments: Banking, Asset Management, and Non-life Insurance. The banking segment provides corporate and institutional customers with solutions for their financing and financial management needs. Banking consists of the following divisions: Corporate Banking, Markets and Baltic Banking. Companies within Banking are the member banks, Helsinki OP Bank PLC, OP-Kotipankki Oyj, OP Mortgage Bank and OP Fund Management Company Ltd and certain smaller companies supporting banking services in its entirety. The Company's Banking and Asset Management segments are also included under OP-Pohjola Group's Banking. The operations of OP Bank Group Mutual Insurance Company's are also included under Banking as the company's business consists of credit insurance to OP-Pohjola Group's retail banks. The Wealth Management Segment comprises the following operations: OP Life Assurance Company Ltd and Aurum Investment Insurance Ltd engaged in the Company's life and pension insurance business, OP Fund Management Company Ltd engaged in mutual fund business, and Pohjola Group's Asset Management segment. The Non-life Insurance segment encompasses the operations of OP-Pohjola Group's non-life insurance companies, i.e. Pohjola Insurance Ltd, Eurooppalainen Insurance Company Ltd, A-Insurance Ltd, the Seesam companies operating in the Baltic countries, as well as the operations of service companies supporting non-life insurance. Non-life insurance products include non-life insurance policies sold to corporate and private customers.
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