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Ecobank Ghana (XGHA:EGH) Sloan Ratio % : -8.01% (As of Sep. 2024)


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What is Ecobank Ghana Sloan Ratio %?

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.

Ecobank Ghana's Sloan Ratio for the quarter that ended in Sep. 2024 was -8.01%.

As of Sep. 2024, Ecobank Ghana has a Sloan Ratio of -8.01%, indicating the company is in the safe zone and there is no funny business with accruals.


Ecobank Ghana Sloan Ratio % Historical Data

The historical data trend for Ecobank Ghana'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.

* Premium members only.

Ecobank Ghana Sloan Ratio % Chart

Ecobank Ghana Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.48 -5.01 9.74 -7.63 -12.84

Ecobank Ghana Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -12.37 -12.84 -4.58 -7.67 -8.01

Competitive Comparison of Ecobank Ghana's Sloan Ratio %

For the Banks - Regional subindustry, Ecobank Ghana'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.


Ecobank Ghana's Sloan Ratio % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Ecobank Ghana's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Ecobank Ghana's Sloan Ratio % falls into.



Ecobank Ghana 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.

Ecobank Ghana's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(632.6-7314.125
--2358.484)/33662.664
=-12.84%

Ecobank Ghana's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(1078.719-7918.552
--3483.961)/41909.228
=-8.01%

Ecobank Ghana's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 106.216 (Dec. 2023 ) + 316.588 (Mar. 2024 ) + 326.822 (Jun. 2024 ) + 329.093 (Sep. 2024 ) = GHS1,079 Mil.
Ecobank Ghana's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 2683.247 (Dec. 2023 ) + -341.398 (Mar. 2024 ) + 4530.964 (Jun. 2024 ) + 1045.739 (Sep. 2024 ) = GHS7,919 Mil.
Ecobank Ghana's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -419.072 (Dec. 2023 ) + -1761.399 (Mar. 2024 ) + -1530.179 (Jun. 2024 ) + 226.689 (Sep. 2024 ) = GHS-3,484 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.


Ecobank Ghana  (XGHA:EGH) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Ecobank Ghana has a Sloan Ratio of -8.01%, indicating the company is in the safe zone and there is no funny business with accruals.


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Ecobank Ghana Business Description

Traded in Other Exchanges
N/A
Address
2 Morocco Lane, Off The Independence Avenue, Ministerial Area, Accra, GHA, 3261
Ecobank Ghana Ltd is a commercial banking corporation based in Ghana. Its service offering includes retail, corporate, and investment banking products. The bank functions through three operating segments namely Consumer banking focused on individuals who are grouped into a premier, advantage (personal banking), and classic & youth banking (direct banking); Commercial Banking focused on Business Banking and Medium Local Corporates such as SMEs, Medium Local corporates and Non-government public sector (schools, faith, NGOs & professional bodies); and Corporate banking specializes in serving the public sector, multinational institutions, financial institutions/international organizations and the Regional Corporate segment of the market.

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