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.
SVB Financial Group's Sloan Ratio for the quarter that ended in Dec. 2022 was 1.15%.
As of Dec. 2022, SVB Financial Group has a Sloan Ratio of 1.15%, indicating the company is in the safe zone and there is no funny business with accruals.
SVB Financial Group Sloan Ratio % Historical Data
The historical data trend for SVB Financial Group'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 SVB Financial Group's Sloan Ratio %
For the Banks - Regional subindustry, SVB Financial Group'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.
SVB Financial Group's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, SVB Financial Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SVB Financial Group's Sloan Ratio % falls into.
SVB Financial Group 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.
SVB Financial Group's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
SVB Financial Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was 515 (Mar. 2022 ) + 373 (Jun. 2022 ) + 469 (Sep. 2022 ) + 315 (Dec. 2022 ) = $1,672 Mil.
SVB Financial Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2022 was 359 (Mar. 2022 ) + 1052 (Jun. 2022 ) + 433 (Sep. 2022 ) + 1020 (Dec. 2022 ) = $2,864 Mil.
SVB Financial Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2022 was -3200 (Mar. 2022 ) + -428 (Jun. 2022 ) + -556 (Sep. 2022 ) + 546 (Dec. 2022 ) = $-3,638 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.
SVB Financial Group (OTCPK:SIVBQ) 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. 2022, SVB Financial Group has a Sloan Ratio of 1.15%, indicating the company is in the safe zone and there is no funny business with accruals.
SVB Financial Group Sloan Ratio % Related Terms
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SVB Financial Group (SVB Financial Group) Business Description
SVB Financial Group provides loans and ancillary financial services to startups, private equity, and venture capital firms. The bank has four segments: Silicon Valley Bank, SVB Private, SVB Capital, and SVB Securities. In addition to providing loans to venture-capital-backed startups, the company invests in private equity and venture capital funds of funds. The bank operates throughout the United States and maintains offices in Canada, the United Kingdom, Israel, China, India, Germany, Denmark, and Ireland.
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