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.
Ithmaar Holding BSC's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.28%.
As of Mar. 2024, Ithmaar Holding BSC has a Sloan Ratio of -2.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Ithmaar Holding BSC Sloan Ratio % Historical Data
The historical data trend for Ithmaar Holding BSC'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 Ithmaar Holding BSC's Sloan Ratio %
For the Banks - Regional subindustry, Ithmaar Holding BSC'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.
Ithmaar Holding BSC's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Ithmaar Holding BSC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ithmaar Holding BSC's Sloan Ratio % falls into.
Ithmaar Holding BSC 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.
Ithmaar Holding BSC's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Ithmaar Holding BSC's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -3.503 (Jun. 2023 ) + 2.025 (Sep. 2023 ) + -4.827 (Dec. 2023 ) + 6.845 (Mar. 2024 ) = $0.5 Mil.
Ithmaar Holding BSC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 113.254 (Jun. 2023 ) + 85.619 (Sep. 2023 ) + 2.571 (Dec. 2023 ) + 292.292 (Mar. 2024 ) = $493.7 Mil.
Ithmaar Holding BSC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 56.911 (Jun. 2023 ) + -247.143 (Sep. 2023 ) + 15.888 (Dec. 2023 ) + -168.321 (Mar. 2024 ) = $-342.7 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.
Ithmaar Holding BSC (BAH:ITHMR) 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, Ithmaar Holding BSC has a Sloan Ratio of -2.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Ithmaar Holding BSC Sloan Ratio % Related Terms
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Ithmaar Holding BSC (BAH:ITHMR) Business Description
Ithmaar Holding BSC is engaged in providing financial services, including retail, commercial, asset management, private banking, takaful, equipment leasing, and real estate development. It also acts as a manager, on a trustee basis of funds deposited for investment in accordance with Islamic laws and principles, particularly regarding the prohibition of receiving or paying interest. The group's business segment includes Retail and Corporate banking, where it receives customer funds, and deposits and extends financing to its retail and corporate clients; Asset Management/ Investment Banking, where it directly participates in investment opportunities and Others.
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