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.
DNB Bank ASA's Sloan Ratio for the quarter that ended in Mar. 2024 was -5.35%.
As of Mar. 2024, DNB Bank ASA has a Sloan Ratio of -5.35%, indicating the company is in the safe zone and there is no funny business with accruals.
DNB Bank ASA Sloan Ratio % Historical Data
The historical data trend for DNB Bank ASA'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 DNB Bank ASA's Sloan Ratio %
For the Banks - Regional subindustry, DNB Bank ASA'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.
DNB Bank ASA's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, DNB Bank ASA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where DNB Bank ASA's Sloan Ratio % falls into.
DNB Bank ASA 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.
DNB Bank ASA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
DNB Bank ASA's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 875.292 (Jun. 2023 ) + 945.201 (Sep. 2023 ) + 892.847 (Dec. 2023 ) + 961.261 (Mar. 2024 ) = $3,675 Mil.
DNB Bank ASA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 775.073 (Jun. 2023 ) + 6982.386 (Sep. 2023 ) + -30968.017 (Dec. 2023 ) + 46674.08 (Mar. 2024 ) = $23,464 Mil.
DNB Bank ASA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -52.981 (Jun. 2023 ) + 43.638 (Sep. 2023 ) + -111.096 (Dec. 2023 ) + -15.831 (Mar. 2024 ) = $-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.
DNB Bank ASA (OTCPK:DNBBF) 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, DNB Bank ASA has a Sloan Ratio of -5.35%, indicating the company is in the safe zone and there is no funny business with accruals.
DNB Bank ASA Sloan Ratio % Related Terms
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DNB Bank ASA is a Norwegian financial services group. About one fourth of its income derives from its international business, including other parts of Europe, Asia, and the Americas. The group offers a full range of financial services, including loans, savings, advisory services, insurance, and pension products for retail and corporate customers. Just under half of its credit exposure is to personal costumers, overwhelmingly in residential mortgages. The other portion of its credit exposure is to large corporations, diversified across an array of industries, most notably oil and gas, shipping, and commercial real estate. The group's strategy emphasizes cost efficiency and customer service.
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