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 Dec. 2023, GFH Financial Group BSC has a Sloan Ratio of -7.85%, indicating the company is in the safe zone and there is no funny business with accruals.
GFH Financial Group BSC 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 GFH Financial Group BSC's Sloan Ratio %
For the Banks - Regional subindustry, GFH Financial Group BSC'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.
GFH Financial Group BSC's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, GFH Financial Group BSC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where GFH Financial Group BSC's Sloan Ratio % falls into.
GFH Financial Group BSC 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.
GFH Financial Group BSC's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
GFH Financial Group BSC's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 88.176 (Mar. 2023 ) + 112.425 (Jun. 2023 ) + 89.27 (Sep. 2023 ) + 87.937 (Dec. 2023 ) = د.إ377.8 Mil.
GFH Financial Group BSC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1959.671 (Mar. 2023 ) + 887.459 (Jun. 2023 ) + -840.67 (Sep. 2023 ) + 1545.398 (Dec. 2023 ) = د.إ3,551.9 Mil.
GFH Financial Group BSC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -675.168 (Mar. 2023 ) + -346.518 (Jun. 2023 ) + 1032.026 (Sep. 2023 ) + 20.392 (Dec. 2023 ) = د.إ30.7 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.
GFH Financial Group BSC (DFM:GFH) 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, GFH Financial Group BSC has a Sloan Ratio of -7.85%, indicating the company is in the safe zone and there is no funny business with accruals.
GFH Financial Group BSC Sloan Ratio % Related Terms
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GFH Financial Group BSC (DFM:GFH) Business Description
GFH Financial Group BSC is an Islamic wholesale investment bank. The firm is organized into three operating segments Investment Banking, Commercial Banking and Proprietary and treasury. Substantial revenue is generated from Proprietary and Treasury operations. The Group has primary operations in Bahrain. The investment banking segment focuses on private equity and asset management activities, Commercial Banking includes all sharia compliant corporate banking and retail banking activities of the Group provided through the Group's subsidiary, Proprietary and treasury includes all common costs and activities that are undertaken at the Group level, including treasury and residual proprietary and co-investment assets.
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