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.
Banco De Chile's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.82%.
As of Dec. 2023, Banco De Chile has a Sloan Ratio of 0.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Banco De Chile Sloan Ratio % Historical Data
The historical data trend for Banco De Chile'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 Banco De Chile's Sloan Ratio %
For the Banks - Regional subindustry, Banco De Chile'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.
Banco De Chile's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Banco De Chile's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Banco De Chile's Sloan Ratio % falls into.
Banco De Chile 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.
Banco De Chile's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Banco De Chile's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 336.937 (Mar. 2023 ) + 413.798 (Jun. 2023 ) + 286.702 (Sep. 2023 ) + 441.655 (Dec. 2023 ) = $1,479 Mil.
Banco De Chile's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -595.476 (Mar. 2023 ) + -8.558 (Jun. 2023 ) + 2348.103 (Sep. 2023 ) + -699.979 (Dec. 2023 ) = $1,044 Mil.
Banco De Chile's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -21.195 (Mar. 2023 ) + -21.074 (Jun. 2023 ) + -24.938 (Sep. 2023 ) + -24.187 (Dec. 2023 ) = $-91 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.
Banco De Chile (NYSE:BCH) 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, Banco De Chile has a Sloan Ratio of 0.82%, indicating the company is in the safe zone and there is no funny business with accruals.
Banco De Chile Sloan Ratio % Related Terms
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Banco De Chile (Banco De Chile) Business Description
Operating under three separate brand names (Banco de Chile, Banco Edwards-Citi, and Banco CrediChile) Banco de Chile is the second largest in the country by loans and third largest by deposits. Banco de Chile generates most of its net interest income (roughly 60% of total revenue) from its mortgage, unsecured consumer credit lines, and commercial loans, with 25% of its outstanding loans being made to firms with more than 10,000 million CLP in revenue. Outside of its banking business, Banco de Chile is the largest asset manager in the country and one of the largest security brokerages, supporting its substantial fee-based revenue.
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