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 Hawaii's Sloan Ratio for the quarter that ended in Mar. 2024 was -3.85%.
As of Mar. 2024, Bank of Hawaii has a Sloan Ratio of -3.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Bank of Hawaii Sloan Ratio % Historical Data
The historical data trend for Bank of Hawaii'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 Hawaii's Sloan Ratio %
For the Banks - Regional subindustry, Bank of Hawaii'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 Hawaii's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Bank of Hawaii's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bank of Hawaii's Sloan Ratio % falls into.
Bank of Hawaii 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 Hawaii's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Bank of Hawaii's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 46.061 (Jun. 2023 ) + 47.903 (Sep. 2023 ) + 30.396 (Dec. 2023 ) + 36.391 (Mar. 2024 ) = $160.8 Mil.
Bank of Hawaii's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 11.59 (Jun. 2023 ) + 143.939 (Sep. 2023 ) + 25.651 (Dec. 2023 ) + 56.835 (Mar. 2024 ) = $238.0 Mil.
Bank of Hawaii's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 136.079 (Jun. 2023 ) + 344.772 (Sep. 2023 ) + 99.077 (Dec. 2023 ) + 244.148 (Mar. 2024 ) = $824.1 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 Hawaii (NYSE:BOH) 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 Hawaii has a Sloan Ratio of -3.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Bank of Hawaii Sloan Ratio % Related Terms
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Bank of Hawaii (Bank of Hawaii) Business Description
Bank of Hawaii Corp provides a broad range of financial products and services primarily to customers in Hawaii, Guam, and other Pacific Islands. The Bank's subsidiaries are engaged in equipment leasing, securities brokerage, investment advisory services, and providing credit insurance. It is organized into three business segments for management reporting purposes: Consumer Banking, Commercial Banking, and Treasury and Other.
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