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.
As of Mar. 2024, Sound Financial Bancorp has a Sloan Ratio of 2.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Sound Financial Bancorp Sloan Ratio % Historical Data
* 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 Sound Financial Bancorp's Sloan Ratio %
For the Banks - Regional subindustry, Sound Financial 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.
Sound Financial Bancorp's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Sound Financial Bancorp's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sound Financial Bancorp's Sloan Ratio % falls into.
Sound Financial 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.
Sound Financial Bancorp's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sound Financial Bancorp's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 2.892 (Jun. 2023 ) + 1.169 (Sep. 2023 ) + 1.211 (Dec. 2023 ) + 0.77 (Mar. 2024 ) = $6.04 Mil.
Sound Financial Bancorp's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -0.161 (Jun. 2023 ) + 2.963 (Sep. 2023 ) + 2.122 (Dec. 2023 ) + 3.519 (Mar. 2024 ) = $8.44 Mil.
Sound Financial Bancorp's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 15.744 (Jun. 2023 ) + -19.963 (Sep. 2023 ) + -19.147 (Dec. 2023 ) + -5.101 (Mar. 2024 ) = $-28.47 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.
Sound Financial Bancorp (NAS:SFBC) 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 Mar. 2024, Sound Financial Bancorp has a Sloan Ratio of 2.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Sound Financial Bancorp Sloan Ratio % Related Terms
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Sound Financial Bancorp (Sound Financial Bancorp) Business Description
Sound Financial Bancorp Inc operates as the holding company for Sound Community Bank that provides traditional banking and other financial services for individuals and businesses. It attracts retail and commercial deposits from the public and invests those funds, along with borrowed funds, in loans secured by first and second mortgages on one-to-four-family residences including home equity loans and lines of credit, commercial and multifamily real estate, construction and land, consumer and commercial business loans. The bank also offers secured and unsecured consumer loan products, including manufactured home loans, floating home loans, automobile loans, boat loans, and recreational vehicle loans.
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