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.
Al Baraka Bank Egypt's Sloan Ratio for the quarter that ended in Sep. 2023 was 13.92%.
As of Sep. 2023, Al Baraka Bank Egypt has a Sloan Ratio of 13.92%, indicating there is a warning stage of accrual build up.
Al Baraka Bank Egypt Sloan Ratio % Historical Data
The historical data trend for Al Baraka Bank Egypt'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 Al Baraka Bank Egypt's Sloan Ratio %
For the Banks - Regional subindustry, Al Baraka Bank Egypt'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.
Al Baraka Bank Egypt's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Al Baraka Bank Egypt's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Al Baraka Bank Egypt's Sloan Ratio % falls into.
Al Baraka Bank Egypt 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.
Al Baraka Bank Egypt's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Al Baraka Bank Egypt's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 494 (Dec. 2022 ) + 445.663 (Mar. 2023 ) + 573.886 (Jun. 2023 ) + 584.74 (Sep. 2023 ) = E£2,098 Mil.
Al Baraka Bank Egypt's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -4456.47 (Dec. 2022 ) + -10001.396 (Mar. 2023 ) + 271.512 (Jun. 2023 ) + -1318.987 (Sep. 2023 ) = E£-15,505 Mil.
Al Baraka Bank Egypt's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 996.37 (Dec. 2022 ) + 887.923 (Mar. 2023 ) + 1565.855 (Jun. 2023 ) + 463.462 (Sep. 2023 ) = E£3,914 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.
Al Baraka Bank Egypt (CAI:SAUD) 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, Al Baraka Bank Egypt has a Sloan Ratio of 13.92%, indicating there is a warning stage of accrual build up.
Al Baraka Bank Egypt Sloan Ratio % Related Terms
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Al Baraka Bank Egypt (CAI:SAUD) Business Description
Al Baraka Bank Egypt operates as an Islamic bank. It provides banking, commercial, financial and investment services. Geographically, it derives a majority of revenue from Greater Cairo. The Bank provides direct financing to companies and institutions that enjoy high creditworthiness, and participates in the syndicated loans of economically feasible large projects that provide employment opportunities as well as contributes to the finance of small and medium enterprises. Its products and services include trade finance such as open account, payment guarantee, vostro accounts, and various investment funds scheme.
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