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 Mar. 2024, Dubai Islamic Bank PJSC has a Sloan Ratio of 0.25%, indicating the company is in the safe zone and there is no funny business with accruals.
Dubai Islamic Bank PJSC 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 Dubai Islamic Bank PJSC's Sloan Ratio %
For the Banks - Regional subindustry, Dubai Islamic Bank PJSC'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.
Dubai Islamic Bank PJSC's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Dubai Islamic Bank PJSC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dubai Islamic Bank PJSC's Sloan Ratio % falls into.
Dubai Islamic Bank PJSC 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.
Dubai Islamic Bank PJSC's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Dubai Islamic Bank PJSC's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1571.334 (Jun. 2023 ) + 1647.628 (Sep. 2023 ) + 2100.874 (Dec. 2023 ) + 1592.796 (Mar. 2024 ) = د.إ6,913 Mil.
Dubai Islamic Bank PJSC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 8088.005 (Jun. 2023 ) + 2552.285 (Sep. 2023 ) + 4239.455 (Dec. 2023 ) + 11480.459 (Mar. 2024 ) = د.إ26,360 Mil.
Dubai Islamic Bank PJSC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -6203.033 (Jun. 2023 ) + -4644.57 (Sep. 2023 ) + -2017.694 (Dec. 2023 ) + -7413.849 (Mar. 2024 ) = د.إ-20,279 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.
Dubai Islamic Bank PJSC (DFM:DIB) 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, Dubai Islamic Bank PJSC has a Sloan Ratio of 0.25%, indicating the company is in the safe zone and there is no funny business with accruals.
Dubai Islamic Bank PJSC Sloan Ratio % Related Terms
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Dubai Islamic Bank PJSC (DFM:DIB) Business Description
Dubai Islamic Bank PJSC is a full-service Islamic bank is engaged in corporate, retail, and investment banking activities. Contracts in the form of Murabahas and leases in the form of Ijarahs constitute a majority of the bank's financing and investment assets. Most of its financing and investment arrangements are made within the United Arab Emirates, a large portion of which are in consumer financing, real estate and contracting, consumer home finance, and services and manufacturing.
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