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.
UMB Financial's Sloan Ratio for the quarter that ended in Dec. 2023 was 2.63%.
As of Dec. 2023, UMB Financial has a Sloan Ratio of 2.63%, indicating the company is in the safe zone and there is no funny business with accruals.
UMB Financial Sloan Ratio % Historical Data
The historical data trend for UMB Financial'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.
For the Banks - Regional subindustry, UMB Financial'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.
UMB Financial Sloan Ratio % Distribution
For the Banks industry and Financial Services sector, UMB Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where UMB Financial's Sloan Ratio % falls into.
UMB Financial 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.
UMB Financial's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
UMB Financial's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 86.336 (Mar. 2023 ) + 83.172 (Jun. 2023 ) + 90.471 (Sep. 2023 ) + 65.036 (Dec. 2023 ) = €325 Mil.
UMB Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1.584 (Mar. 2023 ) + 141.876 (Jun. 2023 ) + 217.587 (Sep. 2023 ) + 77.926 (Dec. 2023 ) = €439 Mil.
UMB Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -39.019 (Mar. 2023 ) + -367.223 (Jun. 2023 ) + -135.442 (Sep. 2023 ) + -631.895 (Dec. 2023 ) = €-1,174 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.
UMB Financial (FRA:UMB) 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, UMB Financial has a Sloan Ratio of 2.63%, indicating the company is in the safe zone and there is no funny business with accruals.
UMB Financial Sloan Ratio % Related Terms
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UMB Financial Corp, or UMBF, is a financial services holding company offering a suite of banking, asset management, and health spending solutions. Its customer base includes commercial, institutional, and personal customers across the United States. The company's banking subsidiaries own and operate banking and wealth-management centres mostly throughout the Midwest and Southwest regions of the U.S. Subsidiaries of the holding company and its lead bank, UMB Bank, include mutual fund and alternative investment services groups, single-purpose companies that deal with brokerage services and insurance, and a registered investment advisory. The bank's revenue is split nearly evenly between interest income and noninterest income.
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