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.
Canadian Western Bank's Sloan Ratio for the quarter that ended in Jan. 2024 was 0.95%.
As of Jan. 2024, Canadian Western Bank has a Sloan Ratio of 0.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Canadian Western Bank Sloan Ratio % Historical Data
The historical data trend for Canadian Western Bank'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 Canadian Western Bank's Sloan Ratio %
For the Banks - Regional subindustry, Canadian Western Bank'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.
Canadian Western Bank's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Canadian Western Bank's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Canadian Western Bank's Sloan Ratio % falls into.
Canadian Western Bank 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.
Canadian Western Bank's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as
Canadian Western Bank's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 77.226 (Apr. 2023 ) + 89.083 (Jul. 2023 ) + 83.962 (Oct. 2023 ) + 93.932 (Jan. 2024 ) = C$344.20 Mil.
Canadian Western Bank's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 65.763 (Apr. 2023 ) + -301.783 (Jul. 2023 ) + 262.89 (Oct. 2023 ) + 465.992 (Jan. 2024 ) = C$492.86 Mil.
Canadian Western Bank's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was 68.92 (Apr. 2023 ) + 212.645 (Jul. 2023 ) + -172.79 (Oct. 2023 ) + -663.035 (Jan. 2024 ) = C$-554.26 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.
Canadian Western Bank (TSX:CWB.PR.D.PFD) 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 Jan. 2024, Canadian Western Bank has a Sloan Ratio of 0.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Canadian Western Bank Sloan Ratio % Related Terms
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Canadian Western Bank (TSX:CWB.PR.D.PFD) Business Description
Canadian Western Bank is a diversified financial service organization providing banking, trust, and wealth management services. The group operates through a number of subsidiaries providing different areas of financial services. Canadian Western Bank offers business banking services including general commercial banking, equipment financing and leasing, real estate financing, and other services for small- and medium-sized companies, as well as personal banking services including chequing and savings accounts, loans, mortgages, and investment products. Canadian Western Trust is engaged in retirement, trustee, and custodial solutions for financial advisors, corporations, and individuals. The company receives maximum revenue from interest income.
Canadian Western Bank (TSX:CWB.PR.D.PFD) Headlines
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