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.
* 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 TriState Capital Holdings's Sloan Ratio %
For the Banks - Regional subindustry, TriState Capital Holdings'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.
TriState Capital Holdings's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, TriState Capital Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where TriState Capital Holdings's Sloan Ratio % falls into.
TriState Capital Holdings 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.
TriState Capital Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
TriState Capital Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2022 was 18.78 (Jun. 2021 ) + 20.016 (Sep. 2021 ) + 23.064 (Dec. 2021 ) + 21.641 (Mar. 2022 ) = $83.5 Mil.
TriState Capital Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2022 was 27.703 (Jun. 2021 ) + 44.065 (Sep. 2021 ) + 24.388 (Dec. 2021 ) + 28.078 (Mar. 2022 ) = $124.2 Mil.
TriState Capital Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2022 was -884.166 (Jun. 2021 ) + -675.844 (Sep. 2021 ) + -903.691 (Dec. 2021 ) + -653.684 (Mar. 2022 ) = $-3,117.4 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.
TriState Capital Holdings (NAS:TSC) 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. 2022, TriState Capital Holdings has a Sloan Ratio of 22.49%, indicating there is a warning stage of accrual build up.
TriState Capital Holdings Sloan Ratio % Related Terms
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TriState Capital Holdings (TriState Capital Holdings) Business Description
TriState Capital Holdings Inc provides various commercial and private banking services to middle-market businesses and high-net-worth individuals in the United States. The company operates in two segments, Bank and Investment Management. Its Investment Management segment provides advisory and sub-advisory investment management services primarily to institutional investors, mutual funds and individual investors. The company generates maximum revenue from the Bank segment.
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