OceanFirst Financial (OceanFirst Financial) Sloan Ratio %

: 3.46% (As of Dec. 2023)

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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.

OceanFirst Financial's Sloan Ratio for the quarter that ended in Dec. 2023 was 3.46%.

As of Dec. 2023, OceanFirst Financial has a Sloan Ratio of 3.46%, indicating the company is in the safe zone and there is no funny business with accruals.

OceanFirst Financial Sloan Ratio % Historical Data

The historical data trend for OceanFirst 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.

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OceanFirst Financial Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

1.95

-0.41

12.16

9.29

3.46

OceanFirst Financial Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %																9.29	7.19	5.38	3.67	3.46

Competitive Comparison

For the Banks - Regional subindustry, OceanFirst 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.

OceanFirst Financial Sloan Ratio % Distribution

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

* The bar in red indicates where OceanFirst Financial's Sloan Ratio % falls into.

OceanFirst 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.

OceanFirst Financial's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(104.029	-	124.261
	-	-487.997)	/	13538.253
	=	3.46%

OceanFirst Financial's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(104.029	-	124.261
	-	-487.997)	/	13538.253
	=	3.46%

OceanFirst Financial's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 27.883 (Mar. 2023 ) + 27.797 (Jun. 2023 ) + 20.667 (Sep. 2023 ) + 27.682 (Dec. 2023 ) = $104.0 Mil.
OceanFirst Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 24.374 (Mar. 2023 ) + 71.888 (Jun. 2023 ) + 54.822 (Sep. 2023 ) + -26.823 (Dec. 2023 ) = $124.3 Mil.
OceanFirst Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -146.648 (Mar. 2023 ) + -7.971 (Jun. 2023 ) + 8.734 (Sep. 2023 ) + -342.112 (Dec. 2023 ) = $-488.0 Mil.

OceanFirst Financial (NAS:OCFC) 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 Dec. 2023, OceanFirst Financial has a Sloan Ratio of 3.46%, indicating the company is in the safe zone and there is no funny business with accruals.

OceanFirst Financial Sloan Ratio % Related Terms

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OceanFirst Financial (OceanFirst Financial) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » OceanFirst Financial Corp (NAS:OCFC) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

OCFCP.PFD:USA

Address

110 West Front Street, Red Bank, NJ, USA, 07701

Website

https://www.oceanfirst.com

OceanFirst Financial Corp is engaged in the banking sector of the United States. It conducts the business of attracting retail and business deposits and investing them in loans, consisting of single-family, owner-occupied residential mortgage loans, and commercial real estate loans. The company's sole segment deals with the delivery of loan and deposit products to customers. The bank's revenues are derived principally from interest on its loans, and to a lesser extent, interest on its investment and mortgage-backed securities. The rest of its income is dependent on bank card services and wealth management services.

Executives

John F Barros	director	975 HOOPER AVENUE, TOMS RIVER NJ 08753
Robert C Garrett	director	110 WEST FRONT STREET, RED BANK NJ 07701
Anthony Iii Giordano	other: Chief Retail Officer, OFB	4 KELLY LANE, LONG BRANCH NJ 07740
David Berninger	officer: EVP & Chief Risk Officer	975 HOOPER AVENUE, TOMS RIVER NJ 08753
Dalila Wilson-scott	director	110 WEST FRONT STREET, RED BANK NJ 07701
Oceanfirst Financial Corp	director	975 HOOPER AVENUE, TOMS RIVER NJ 08723
Brian Schaeffer	other: EVP & CIO, OceanFirst Bank	975 HOOPER AVENUE, TOMS RIVER NJ 08753
Joseph Iii Lebel	other: EVP, CBO OceanFirst Bank	975 HOOPER AVENUE, TOMS RIVER NJ 08754
Jack M. Farris	director	C/O OCEANFIRST BANK, 975 HOOPER AVE., TOMS RIVER NJ 08754
Christopher Maher	director, officer: Chairman, President and CEO	209 HAVEMEYER STREET, BROOKLYN NY 11211
Murphy Joseph M. Jr.	director	110 WEST FRONT STREET, RED BANK NJ 07701
Patrick Sean Barrett	officer: Executive Vice President & CFO	C/O FULTON FINANCIAL CORPORATION, ONE PENN SQUARE, LANCASTER PA 17602
Patrick Chong	other: SVP/Principal Accounting Off.	110 WEST FRONT STREET, RED BANK NJ 07701
Michael D Devlin	director	834 CENTRAL AVENUE, P.O. BOX 189, HAMMONTON NJ 08037
Nicos Katsoulis	director	C/O STATE BANCORP, INC., TWO JERICHO PLAZA, JERICHO NY 11753