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First Horizon (NYSE:FHN) Sloan Ratio %

: -10.72% (As of Sep. 2022)
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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.

First Horizon's Sloan Ratio for the quarter that ended in Sep. 2022 was -10.72%.

As of Sep. 2022, First Horizon has a Sloan Ratio of -10.72%, indicating there is a warning stage of accrual build up.


First Horizon Sloan Ratio % Historical Data

The historical data trend for First Horizon'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.

* Premium members only.

First Horizon Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -0.41 4.62 6.70 5.47 -

First Horizon Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.47 1.11 -2.90 -10.72 -

Competitive Comparison

For the Banks - Regional subindustry, First Horizon'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.

   

First Horizon Sloan Ratio % Distribution

For the Banks industry and Financial Services sector, First Horizon's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where First Horizon's Sloan Ratio % falls in comparison to its industry or sector. The grey bar indicates the Sloan Ratio %'s extreme value range as defined by GuruFocus.



First Horizon 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.

First Horizon's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2021 )-Cash Flow from Operations (A: Dec. 2021 )
-Cash Flow from Investing (A: Dec. 2021 ))/Total Assets (A: Dec. 2021 )
=(999-741
--4617)/89092
=5.47%

First Horizon's Sloan Ratio for the quarter that ended in Sep. 2022 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2022 )
=(861-2459
-7011)/80299
=-10.72%

First Horizon's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was 227 (Dec. 2021 ) + 195 (Mar. 2022 ) + 174 (Jun. 2022 ) + 265 (Sep. 2022 ) = $861 Mil.
First Horizon's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2022 was 173 (Dec. 2021 ) + 694 (Mar. 2022 ) + 824 (Jun. 2022 ) + 768 (Sep. 2022 ) = $2,459 Mil.
First Horizon's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2022 was -144 (Dec. 2021 ) + 154 (Mar. 2022 ) + 2566 (Jun. 2022 ) + 4435 (Sep. 2022 ) = $7,011 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.


First Horizon  (NYSE:FHN) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Sep. 2022, First Horizon has a Sloan Ratio of -10.72%, indicating there is a warning stage of accrual build up.


First Horizon Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of First Horizon's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


First Horizon (NYSE:FHN) Business Description

First Horizon logo
Address
165 Madison Avenue, Memphis, TN, USA, 38103
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.
Executives
Hope Dmuchowski officer: Sr. EVP & CFO 165 MADISON AVE, MEMPHIS TN 38103
John N Casbon director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Tammy Locascio officer: Sr. EVP, Chief HR Officer 165 MADISON AVE, MEMPHIS TN 38103
Kemp Sr James Michael director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Ricky E Maples director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Terry Lawson Akins officer: Sr. EVP, Chief Risk Officer 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Elizabeth A Ardoin officer: SEVP, Chief Communications Ofc 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Rosa Sugranes director 2975 N.W. 77TH AVE, DORAL FL 33132
Anthony J Restel officer: SEVP Chief Operating Officer 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Shea E Stewart Iii director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
William H Fenstermaker director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Daryl G Byrd director, officer: Executive Chairman of Board 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Barton Harry V Jr director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Michael J Brown officer: President - Regional Banking 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Wendy P Davidson director 2210 WEST OAKLAWN DRIVE, SPRINGDALE AR 72762

First Horizon (NYSE:FHN) Headlines

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