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, ESAF Small Finance Bank has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
ESAF Small Finance Bank 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 ESAF Small Finance Bank's Sloan Ratio %
For the Banks - Regional subindustry, ESAF Small Finance Bank'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.
ESAF Small Finance Bank's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, ESAF Small Finance Bank's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ESAF Small Finance Bank's Sloan Ratio % falls into.
ESAF Small Finance Bank 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.
ESAF Small Finance Bank's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as
ESAF Small Finance Bank's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 1121.4 (Dec. 2023 ) + 433.477 (Mar. 2024 ) + 627.7 (Jun. 2024 ) + -1900.7 (Sep. 2024 ) = ₹282 Mil.
ESAF Small Finance Bank's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 0 (Dec. 2023 ) + 0 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Sep. 2024 ) = ₹0 Mil.
ESAF Small Finance Bank's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0 (Dec. 2023 ) + 0 (Mar. 2024 ) + 0 (Jun. 2024 ) + 0 (Sep. 2024 ) = ₹0 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.
ESAF Small Finance Bank (NSE:ESAFSFB) 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, ESAF Small Finance Bank has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
ESAF Small Finance Bank Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of ESAF Small Finance Bank's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
ESAF Small Finance Bank Ltd is one of the dominant small finance banks in India in terms of client base size, the yield on advances, Net Interest Margin, assets under management CAGR, total deposit CAGR, loan portfolio concentration in rural and semi-urban areas, and the ratio of microloan advances to gross advances. It delivers its products and services through its business correspondents, customer service centers (which are operated by its business correspondents), Branches, banking agents, ATMs, ATM cum debit cards, mobile banking platforms, SMS alerts, internet banking portals and unified payment interface facilities. It has business segments segregating them into Treasury, Wholesale Banking, Retail Banking and Other Banking Operations. Majority of revenue comes from Retail Banking.
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