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.
Mackinac Financial's Sloan Ratio for the quarter that ended in Jun. 2021 was -12.91%.
As of Jun. 2021, Mackinac Financial has a Sloan Ratio of -12.91%, indicating there is a warning stage of accrual build up.
Mackinac Financial Sloan Ratio % Historical Data
The historical data trend for Mackinac 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.
Competitive Comparison of Mackinac Financial's Sloan Ratio %
For the Banks - Regional subindustry, Mackinac 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.
Mackinac Financial's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Mackinac Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mackinac Financial's Sloan Ratio % falls into.
Mackinac 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.
Mackinac Financial's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as
Mackinac Financial's Net Income for the trailing twelve months (TTM) ended in Jun. 2021 was 3.324 (Sep. 2020 ) + 3.644 (Dec. 2020 ) + 3.88 (Mar. 2021 ) + 2.945 (Jun. 2021 ) = $13.79 Mil.
Mackinac Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2021 was 7.754 (Sep. 2020 ) + 1.536 (Dec. 2020 ) + 4.784 (Mar. 2021 ) + 7.717 (Jun. 2021 ) = $21.79 Mil.
Mackinac Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2021 was 10.608 (Sep. 2020 ) + 67.828 (Dec. 2020 ) + 16.725 (Mar. 2021 ) + 92.888 (Jun. 2021 ) = $188.05 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.
Mackinac Financial (NAS:MFNC) 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 Jun. 2021, Mackinac Financial has a Sloan Ratio of -12.91%, indicating there is a warning stage of accrual build up.
Mackinac Financial Sloan Ratio % Related Terms
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Mackinac Financial (Mackinac Financial) Business Description
Mackinac Financial Corp is a bank holding company. It is engaged in the business of retail and commercial banking. Its products and services include checking and savings accounts, time deposits, interest-bearing transaction accounts, safe deposit facilities, commercial and governmental lease financing and direct, indirect consumer financing, commercial lending, treasury management products, services for small to mid-sized businesses as well as full array of personal and business deposit products and consumer loans. It earns revenue from loans, investments and other interest-bearing assets.
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