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.
5Banc Split's Sloan Ratio for the quarter that ended in Jun. 2016 was 0.00%.
As of Jun. 2016, 5Banc Split has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
5Banc Split Sloan Ratio % Historical Data
The historical data trend for 5Banc Split'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 5Banc Split's Sloan Ratio %
For the Asset Management subindustry, 5Banc Split'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.
5Banc Split's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, 5Banc Split's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where 5Banc Split's Sloan Ratio % falls into.
5Banc Split 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.
5Banc Split's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
5Banc Split's Net Income for the trailing twelve months (TTM) ended in Jun. 2016 was -0.442 (Dec. 2015 ) + 2.84 (Jun. 2016 ) = C$2.40 Mil.
5Banc Split's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 1.407 (Dec. 2015 ) + 0.58 (Jun. 2016 ) = C$1.99 Mil.
5Banc Split's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2016 was 0 (Dec. 2015 ) + 0 (Jun. 2016 ) = C$0.00 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.
5Banc Split (TSX:FBS.PR.C.PFD) 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 Jun. 2016, 5Banc Split has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
5Banc Split Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of 5Banc Split's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
5Banc Split (TSX:FBS.PR.C.PFD) Business Description
5Banc Split, Inc. operates as a closed-end mutual fund in Canada. It invests in a portfolio of publicly listed common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and toronto-Dominion Bank. The Company holds the Portfolio Shares in order to generate fixed cumulative preferential dividends for the holders of the Company's Preferred Shares. Holders of the Capital Shares will also receive, subject to the prior rights of Preferred Shareholders, excess dividends, if any, after payment of the expenses of the Company and dividends on the Preferred Shares. The Company also provides holders of the Capital Shares with a leveraged investment, the value of which is linked to the changes in the fair value of the Portfolio Shares. The holders of Capital Shares benefit from capital appreciation in the Portfolio Shares in excess of the value of the Preferred Shares, any accrued and unpaid distributions on the Preferred Shares, and accrued and unpaid expenses. The Company only trades the Portfolio Shares in limited circumstances as described in the Company's original prospectus.
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