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.
Bank Of China's Sloan Ratio for the quarter that ended in Mar. 2024 was 1.21%.
As of Mar. 2024, Bank Of China has a Sloan Ratio of 1.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Bank Of China Sloan Ratio % Historical Data
The historical data trend for Bank Of China'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 Bank Of China's Sloan Ratio %
For the Banks - Diversified subindustry, Bank Of China'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.
Bank Of China's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Bank Of China's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bank Of China's Sloan Ratio % falls into.
Bank Of China 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.
Bank Of China's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Bank Of China's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 8717.848 (Jun. 2023 ) + 7503.939 (Sep. 2023 ) + 7989.412 (Dec. 2023 ) + 7774.63 (Mar. 2024 ) = $31,986 Mil.
Bank Of China's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 20460.106 (Jun. 2023 ) + -20433.686 (Sep. 2023 ) + 46257.388 (Dec. 2023 ) + 449.906 (Mar. 2024 ) = $46,734 Mil.
Bank Of China's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -11388.136 (Jun. 2023 ) + -2745.447 (Sep. 2023 ) + -36499.818 (Dec. 2023 ) + -20553.496 (Mar. 2024 ) = $-71,187 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.
Bank Of China (OTCPK:BACHY) 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 Mar. 2024, Bank Of China has a Sloan Ratio of 1.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Bank Of China Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Bank Of China's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Bank Of China (Bank Of China) Business Description
Bank of China was founded in 1912 with headquarter in Beijing. The bank has evolved as a central bank, international exchange bank, and state-owned bank specializing in foreign trade business. BOC was listed on the Hong Kong and Shanghai stock exchanges in 2006. It provides a comprehensive range of financial services to customers across greater China and overseas. Central Huijin, a Chinese state-owned investment company and BOC's largest shareholder, controls 64%.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BACHY has been successfully added to your 