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.
Oak Valley Bancorp's Sloan Ratio for the quarter that ended in Dec. 2023 was 4.20%.
As of Dec. 2023, Oak Valley Bancorp has a Sloan Ratio of 4.20%, indicating the company is in the safe zone and there is no funny business with accruals.
Oak Valley Bancorp Sloan Ratio % Historical Data
The historical data trend for Oak Valley Bancorp'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 Oak Valley Bancorp's Sloan Ratio %
For the Banks - Regional subindustry, Oak Valley Bancorp'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.
Oak Valley Bancorp's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Oak Valley Bancorp's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Oak Valley Bancorp's Sloan Ratio % falls into.
Oak Valley Bancorp 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.
Oak Valley Bancorp's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Oak Valley Bancorp's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 9.225 (Mar. 2023 ) + 8.404 (Jun. 2023 ) + 7.354 (Sep. 2023 ) + 5.865 (Dec. 2023 ) = $30.85 Mil.
Oak Valley Bancorp's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 12.022 (Mar. 2023 ) + 11.271 (Jun. 2023 ) + 11.032 (Sep. 2023 ) + -1.266 (Dec. 2023 ) = $33.06 Mil.
Oak Valley Bancorp's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -5.634 (Mar. 2023 ) + -13.331 (Jun. 2023 ) + -16.626 (Sep. 2023 ) + -43.913 (Dec. 2023 ) = $-79.50 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.
Oak Valley Bancorp (NAS:OVLY) 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, Oak Valley Bancorp has a Sloan Ratio of 4.20%, indicating the company is in the safe zone and there is no funny business with accruals.
Oak Valley Bancorp Sloan Ratio % Related Terms
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Oak Valley Bancorp (Oak Valley Bancorp) Business Description
Oak Valley Bancorp is a bank holding company which operates through Oak Valley Community Bank (the Bank). The Bank offers a complement of business checking and savings accounts for its business customers. The Bank also offers commercial and real estate loans, as well as lines of credit. In addition, the bank provides other services for both individuals and businesses including online banking, remote deposit capture, mobile banking, merchant services, night depository, extended hours, wire transfer of funds, note collection, and automated teller machines in a national network. Its primary source of revenue is net interest income.
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