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. 2023, Alliance Bank Malaysia Bhd has a Sloan Ratio of 2.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Alliance Bank Malaysia Bhd 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 Alliance Bank Malaysia Bhd's Sloan Ratio %
For the Banks - Regional subindustry, Alliance Bank Malaysia Bhd'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.
Alliance Bank Malaysia Bhd's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Alliance Bank Malaysia Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Alliance Bank Malaysia Bhd's Sloan Ratio % falls into.
Alliance Bank Malaysia Bhd 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.
Alliance Bank Malaysia Bhd's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 130.166 (Mar. 2023 ) + 150.54 (Jun. 2023 ) + 185.329 (Sep. 2023 ) + 176.864 (Dec. 2023 ) = RM643 Mil.
Alliance Bank Malaysia Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -448.2 (Mar. 2023 ) + -121.054 (Jun. 2023 ) + 381.626 (Sep. 2023 ) + 577.533 (Dec. 2023 ) = RM390 Mil.
Alliance Bank Malaysia Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -490.095 (Mar. 2023 ) + -1286.921 (Jun. 2023 ) + -288.669 (Sep. 2023 ) + 596.295 (Dec. 2023 ) = RM-1,469 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.
Alliance Bank Malaysia Bhd (XKLS:2488) 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. 2023, Alliance Bank Malaysia Bhd has a Sloan Ratio of 2.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Alliance Bank Malaysia Bhd Sloan Ratio % Related Terms
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Alliance Bank Malaysia Bhd (XKLS:2488) Business Description
Alliance Bank Malaysia Bhd is a Malaysia-based company engaged in providing banking and financial services. Its segments consist of its consumer banking segment, which offers personal banking solutions, including mortgages, credit cards, and wealth management. The business banking segment consists of small and midsize enterprise and wholesale banking and offers products and services, such as cash management, trade finance, treasury, and structured solutions. The financial markets segment offers money market, hedging, foreign exchange, wealth management, and stockbroking and corporate advisory segment. The stockbroking and corporate advisory cover stockbroking activities and corporate advisory and other segments. It generates maximum revenue from the business banking segment.
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