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, Community Financial System has a Sloan Ratio of 2.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Community Financial System 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 Community Financial System's Sloan Ratio %
For the Banks - Regional subindustry, Community Financial System'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.
Community Financial System's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Community Financial System's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Community Financial System's Sloan Ratio % falls into.
Community Financial System 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.
Community Financial System's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 44.573 (Jun. 2023 ) + 41.349 (Sep. 2023 ) + 30.908 (Dec. 2023 ) + 37.602 (Mar. 2024 ) = €154.4 Mil.
Community Financial System's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 38.288 (Jun. 2023 ) + 60.772 (Sep. 2023 ) + 40.995 (Dec. 2023 ) + 73.502 (Mar. 2024 ) = €213.6 Mil.
Community Financial System's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 147.494 (Jun. 2023 ) + -115.466 (Sep. 2023 ) + -272.225 (Dec. 2023 ) + -197.502 (Mar. 2024 ) = €-437.7 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.
Community Financial System (FRA:CBY) 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, Community Financial System has a Sloan Ratio of 2.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Community Financial System Sloan Ratio % Related Terms
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Community Financial System (FRA:CBY) Business Description
Community Bank System Inc is a financial holding company. The company primarily operates through two wholly-owned subsidiaries: Community Bank, N.A. and Benefit Plans Administrative Services. Community Bank's business is operating a community bank providing a broad array of banking and financial services. These are offered chiefly to retail, commercial, and municipal customers in non-metropolitan markets, including small towns in upstate New York and Northeastern Pennsylvania. The company has historically relied on acquisitions to fuel growth, in addition to growing organically. A majority of its loan portfolio is tilted toward the consumer market on an installment, line of credit, or residential mortgage loan basis. The majority of the company's net revenue is net interest income.
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