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 Dec. 2024, United Community Banks has a Sloan Ratio of 3.22%, indicating the company is in the safe zone and there is no funny business with accruals.
United Community Banks 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 United Community Banks's Sloan Ratio %
For the Banks - Regional subindustry, United Community Banks'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.
United Community Banks's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, United Community Banks's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where United Community Banks's Sloan Ratio % falls into.
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.
United Community Banks's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
United Community Banks's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 62.631 (Mar. 2024 ) + 66.615 (Jun. 2024 ) + 47.347 (Sep. 2024 ) + 75.804 (Dec. 2024 ) = $252.4 Mil.
United Community Banks's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 88.809 (Mar. 2024 ) + 105.092 (Jun. 2024 ) + 7.741 (Sep. 2024 ) + 148.092 (Dec. 2024 ) = $349.7 Mil.
United Community Banks's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -122.513 (Mar. 2024 ) + -124.756 (Jun. 2024 ) + -63.151 (Sep. 2024 ) + -680.622 (Dec. 2024 ) = $-991.0 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.
United Community Banks (NYSE:UCB) 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. 2024, United Community Banks has a Sloan Ratio of 3.22%, indicating the company is in the safe zone and there is no funny business with accruals.
United Community Banks Sloan Ratio % Related Terms
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United Community Banks Inc provides a wide range of financial products and services to the commercial, retail, governmental, educational, energy, health care and real estate sectors. This includes a variety of deposit products, secured and unsecured loans, mortgage loans, payment and commerce solutions, equipment finance services, wealth management, trust services, private banking, investment advisory services, insurance services, and other related financial services. These products and services are delivered through a variety of channels including its branches, other offices, the Internet, and mobile applications. It operates as a locally-focused community bank, supplemented by experienced, centralized support to deliver products and services to its larger, more sophisticated, customers.
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