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 Sep. 2023, Housing & Development Bank has a Sloan Ratio of -3.03%, indicating the company is in the safe zone and there is no funny business with accruals.
Housing & Development Bank 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 Housing & Development Bank's Sloan Ratio %
For the Banks - Regional subindustry, Housing & Development 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.
Housing & Development Bank's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Housing & Development Bank's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Housing & Development Bank's Sloan Ratio % falls into.
Housing & Development 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.
Housing & Development Bank's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 723.521 (Dec. 2022 ) + 1328.677 (Mar. 2023 ) + 1945.661 (Jun. 2023 ) + 1461.681 (Sep. 2023 ) = E£5,460 Mil.
Housing & Development Bank's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -6714.059 (Dec. 2022 ) + 11734.478 (Mar. 2023 ) + -4552.152 (Jun. 2023 ) + 3672.631 (Sep. 2023 ) = E£4,141 Mil.
Housing & Development Bank's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 5215.233 (Dec. 2022 ) + -4049.987 (Mar. 2023 ) + 2805.535 (Jun. 2023 ) + 1102.069 (Sep. 2023 ) = E£5,073 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.
Housing & Development Bank (CAI:HDBK) 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 Sep. 2023, Housing & Development Bank has a Sloan Ratio of -3.03%, indicating the company is in the safe zone and there is no funny business with accruals.
Housing & Development Bank Sloan Ratio % Related Terms
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Housing & Development Bank (CAI:HDBK) Business Description
Housing & Development Bank operates as a bank in the Arab Republic of Egypt. The company provides loans and other services to financial institutions, agricultural, industrial institutions, commercial, services, real estate activity and governmental sector. It operates its business in four segments which are Corporate, Medium and Small Sized Enterprise, Investments, Retail and Other Activities.
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