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.
Polonia Bancorp's Sloan Ratio for the quarter that ended in Dec. 2015 was -11.50%.
As of Dec. 2015, Polonia Bancorp has a Sloan Ratio of -11.50%, indicating there is a warning stage of accrual build up.
Polonia Bancorp Sloan Ratio % Historical Data
The historical data trend for Polonia Bancorp'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 Polonia Bancorp's Sloan Ratio %
For the Banks - Regional subindustry, Polonia Bancorp'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.
Polonia Bancorp's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Polonia Bancorp's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Polonia Bancorp's Sloan Ratio % falls into.
Polonia Bancorp 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.
Polonia Bancorp's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Polonia Bancorp's Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was 0.138 (Mar. 2015 ) + -0.111 (Jun. 2015 ) + 0.305 (Sep. 2015 ) + -0.47 (Dec. 2015 ) = $-0.14 Mil.
Polonia Bancorp's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was -0.526 (Mar. 2015 ) + -3.428 (Jun. 2015 ) + 5.739 (Sep. 2015 ) + 2.508 (Dec. 2015 ) = $4.29 Mil.
Polonia Bancorp's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was 28.443 (Mar. 2015 ) + 2.438 (Jun. 2015 ) + 15.757 (Sep. 2015 ) + -17.54 (Dec. 2015 ) = $29.10 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.
Polonia Bancorp (OTCBB:PBCP) 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. 2015, Polonia Bancorp has a Sloan Ratio of -11.50%, indicating there is a warning stage of accrual build up.
Polonia Bancorp Sloan Ratio % Related Terms
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Polonia Bancorp (Polonia Bancorp) Business Description
Polonia Bancorp Inc is a Maryland corporation that was incorporated in August 2011. The Company is headquartered in Huntingdon Valley and operates as a community-oriented financial institution dedicated to serving the financial services needs of consumers and businesses within its market areas. The Bank is engaged mainly in the business of attracting deposits from the general public and using using such funds to originate loans. Polonia Bank also maintains an investment portfolio. Polonia Bank's primary federal regulator is the Office of the Comptroller of the Currency (OCC). Its loan portfolio consists of one- to four-family residential real estate loans, multi-family and nonresidential real estate loans, home equity loans, commercial loans and consumer loans. Currently, it offers only fixed-rate mortgage products. The one- to four-family residential real estate loans are normally originated with up to 30-year terms, such loans typically remain outstanding for substantially shorter periods because borrowers often prepay their loans in full upon sale of the property pledged as security or upon refinancing the original loan. The multi-family and nonresidential real estate loans are generally secured by apartment buildings, small office buildings and owner-occupied properties. It offers loans with adjustable interest rates tied to a market index in its market area. It offers consumer loans in the form of loans secured by savings accounts or time deposits. The Company has the legal authority to invest in various types of liquid assets, including U.S. Treasury obligations, securities of various federal agencies and municipal governments, corporate securities, mortgage-backed securities, deposits at the FHLB of Pittsburgh and time deposits of federally insured institutions. The Company faces competition for the attraction of deposits and origination of loans. The Company's direct competition for deposits has historically come from the several financial institutions operating in its market areas and, to a lesser extent, from other financial service companies such as brokerage firms, credit unions and insurance companies. The Company is subject to regulation, supervision and examination by the Federal Reserve Board and the OCC, its main federal regulator, and by the FDIC, as insurer of its deposits.
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