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.
Texas Capital Bancshares's Sloan Ratio for the quarter that ended in Mar. 2024 was 2.59%.
As of Mar. 2024, Texas Capital Bancshares has a Sloan Ratio of 2.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Texas Capital Bancshares Sloan Ratio % Historical Data
The historical data trend for Texas Capital Bancshares'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 Texas Capital Bancshares's Sloan Ratio %
For the Banks - Regional subindustry, Texas Capital Bancshares'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.
Texas Capital Bancshares's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Texas Capital Bancshares's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Texas Capital Bancshares's Sloan Ratio % falls into.
Texas Capital Bancshares 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.
Texas Capital Bancshares's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Texas Capital Bancshares's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 68.651 (Jun. 2023 ) + 61.679 (Sep. 2023 ) + 20.15 (Dec. 2023 ) + 26.142 (Mar. 2024 ) = $177 Mil.
Texas Capital Bancshares's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 72.458 (Jun. 2023 ) + 95.412 (Sep. 2023 ) + 187.667 (Dec. 2023 ) + 95.82 (Mar. 2024 ) = $451 Mil.
Texas Capital Bancshares's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1182.04 (Jun. 2023 ) + 643.924 (Sep. 2023 ) + 318.414 (Dec. 2023 ) + -809.96 (Mar. 2024 ) = $-1,030 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.
Texas Capital Bancshares (NAS:TCBI) 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, Texas Capital Bancshares has a Sloan Ratio of 2.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Texas Capital Bancshares Sloan Ratio % Related Terms
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Texas Capital Bancshares (Texas Capital Bancshares) Business Description
Texas Capital Bancshares Inc is a secured lender, with the majority of the loans held for investment, excluding mortgage finance loans and other national lines of business. The company's national lines of business provide specialized lending products to businesses throughout the United States. The bank operates in Texas' main metropolitan areas, like Austin, Dallas, Fort Worth, Houston, and San Antonio.
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