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.
Bancontander Chile's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.96%.
As of Dec. 2023, Bancontander Chile has a Sloan Ratio of -0.96%, indicating the company is in the safe zone and there is no funny business with accruals.
Bancontander Chile Sloan Ratio % Historical Data
The historical data trend for Bancontander 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 Bancontander Chile's Sloan Ratio %
For the Banks - Regional subindustry, Bancontander 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.
Bancontander Chile's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Bancontander Chile's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bancontander Chile's Sloan Ratio % falls into.
Bancontander 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.
Bancontander Chile's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Bancontander Chile's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 171.899 (Mar. 2023 ) + 158.453 (Jun. 2023 ) + 62.432 (Sep. 2023 ) + 297.773 (Dec. 2023 ) = $691 Mil.
Bancontander Chile's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 841.761 (Mar. 2023 ) + 9.284 (Jun. 2023 ) + -485.072 (Sep. 2023 ) + 1241.503 (Dec. 2023 ) = $1,607 Mil.
Bancontander Chile's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -16.464 (Mar. 2023 ) + -16.406 (Jun. 2023 ) + -38.686 (Sep. 2023 ) + -64.842 (Dec. 2023 ) = $-136 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.
Bancontander Chile (NYSE:BSAC) 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, Bancontander Chile has a Sloan Ratio of -0.96%, indicating the company is in the safe zone and there is no funny business with accruals.
Bancontander Chile Sloan Ratio % Related Terms
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Bancontander Chile (Bancontander Chile) Business Description
Founded in 1978, Banco Santander Chile is part of the Santander group and majority controlled by Santander Spain. Banco Santander is the largest bank in Chile by loans and the second largest by deposits. The bank generates most of its net interest income (roughly 65% of total revenue) from its mortgage, unsecured consumer credit lines, and commercial loans. Banco Santander's commercial loan business is more focused on small- to medium-sized companies, with firms generating more than CLP 10,000 million in revenue only making up around 5% of outstanding loans. Outside of lending, Banco Santander is the largest card issuer in the country with around 25% of the market and benefits from a long-term strategic partnership with the largest airline in the country LATAM Chile.
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