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, Bankwell Financial Group has a Sloan Ratio of -2.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Bankwell Financial Group 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 Bankwell Financial Group's Sloan Ratio %
For the Banks - Regional subindustry, Bankwell Financial Group'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.
Bankwell Financial Group's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Bankwell Financial Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Bankwell Financial Group's Sloan Ratio % falls into.
Bankwell Financial Group 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.
Bankwell Financial Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Bankwell Financial Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 7.983 (Jun. 2023 ) + 9.777 (Sep. 2023 ) + 8.524 (Dec. 2023 ) + 3.763 (Mar. 2024 ) = $30.05 Mil.
Bankwell Financial Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 12.628 (Jun. 2023 ) + 12.713 (Sep. 2023 ) + -0.527 (Dec. 2023 ) + 9.029 (Mar. 2024 ) = $33.84 Mil.
Bankwell Financial Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -16.754 (Jun. 2023 ) + 5.128 (Sep. 2023 ) + 45.018 (Dec. 2023 ) + 35.178 (Mar. 2024 ) = $68.57 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.
Bankwell Financial Group (NAS:BWFG) 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, Bankwell Financial Group has a Sloan Ratio of -2.29%, indicating the company is in the safe zone and there is no funny business with accruals.
Bankwell Financial Group Sloan Ratio % Related Terms
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Bankwell Financial Group (Bankwell Financial Group) Business Description
Bankwell Financial Group Inc is a bank holding company, engaged in providing financial products and services. It offers products related to commercial lending, retail lending, depository services, and others. The bank's commercial lending products include owner-occupied commercial real estate loans, commercial real estate investment loans, commercial loans to small and mid-sized businesses, and real estate construction and development loans. The retail lending products include residential mortgage loans, home equity lines of credit, and consumer installment loans. Its depository products include checking, savings, money market, certificates of deposit, noninterest-bearing demand, and time deposits.
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