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.
HF Financial's Sloan Ratio for the quarter that ended in Mar. 2016 was 0.60%.
As of Mar. 2016, HF Financial has a Sloan Ratio of 0.60%, indicating the company is in the safe zone and there is no funny business with accruals.
HF Financial Sloan Ratio % Historical Data
The historical data trend for HF Financial'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 HF Financial's Sloan Ratio %
For the Banks - Regional subindustry, HF Financial'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.
HF Financial's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, HF Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where HF Financial's Sloan Ratio % falls into.
HF Financial 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.
HF Financial's Sloan Ratio for the fiscal year that ended in Jun. 2015 is calculated as
HF Financial's Net Income for the trailing twelve months (TTM) ended in Mar. 2016 was 1.963 (Jun. 2015 ) + 3.852 (Sep. 2015 ) + 1.478 (Dec. 2015 ) + 2.069 (Mar. 2016 ) = $9.36 Mil.
HF Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was -0.531 (Jun. 2015 ) + 1.912 (Sep. 2015 ) + 3.557 (Dec. 2015 ) + 10.146 (Mar. 2016 ) = $15.08 Mil.
HF Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 was -44.179 (Jun. 2015 ) + 11.293 (Sep. 2015 ) + -0.263 (Dec. 2015 ) + 20.595 (Mar. 2016 ) = $-12.55 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.
HF Financial (NAS:HFFC) 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. 2016, HF Financial has a Sloan Ratio of 0.60%, indicating the company is in the safe zone and there is no funny business with accruals.
HF Financial Sloan Ratio % Related Terms
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HF Financial Corp was incorporated under the laws of the State of Delaware in November 1991. The Company was formed for owning all of the outstanding stock of Home Federal Bank issued in the mutual to stock conversion of the Bank. The Company is regulated as a bank holding company by the Board of Governors of the Federal Reserve System. The Bank provides full-service consumer and commercial business banking, including an array of financial products, to meet the needs of its market place. The Bank attracts deposits from the general public and uses such deposits, together with borrowings and other funds, to originate one-to-four family residential, commercial business, consumer, multi-family, commercial real estate, construction and agricultural loans. The Bank's consumer loan portfolio includes, among other things, automobile loans, home equity loans, loans secured by deposit accounts and student loans. The Bank also purchases agency residential mortgage-backed securities and invests in U.S. Government and agency obligations and other permissible investments. The Bank, through its wholly owned subsidiaries, offers annuities, mutual funds, life insurance and other financial products, and equipment leasing services. The Company's reportable segments are banking (including leasing activities) and other. The banking segment is conducted through the Bank and Mid America Capital and the other segment is composed of smaller non-reportable segments, the Company and intersegment eliminations. The Bank's primary market area includes communities located in eastern and central South Dakota, including the Sioux Falls metropolitan statistical area ("MSA"), and the cities of Mitchell, Aberdeen, Brookings, Watertown, and Yankton. The Bank has a banking center in Marshall, Minnesota, which serves customers located in southwestern Minnesota. It competes with other commercial banks, credit unions, savings and loan associations, mortgage banking firms, consumer finance companies, securities brokerage firms, insurance companies, money market funds and other mutual funds, as well as super-regional, national and international financial institutions.
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