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.
Community Bank System's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.78%.
As of Dec. 2023, Community Bank System has a Sloan Ratio of -2.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Community Bank System Sloan Ratio % Historical Data
The historical data trend for Community Bank System'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 Community Bank System's Sloan Ratio %
For the Banks - Regional subindustry, Community Bank 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 Bank System's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Community Bank System's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Community Bank System's Sloan Ratio % falls into.
Community Bank 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 Bank System's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Community Bank System's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 5.798 (Mar. 2023 ) + 48.291 (Jun. 2023 ) + 44.129 (Sep. 2023 ) + 33.706 (Dec. 2023 ) = $131.9 Mil.
Community Bank System's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 77.374 (Mar. 2023 ) + 41.482 (Jun. 2023 ) + 64.858 (Sep. 2023 ) + 44.706 (Dec. 2023 ) = $228.4 Mil.
Community Bank System's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 596.072 (Mar. 2023 ) + 159.798 (Jun. 2023 ) + -123.229 (Sep. 2023 ) + -296.865 (Dec. 2023 ) = $335.8 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 Bank System (NYSE:CBU) 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 Dec. 2023, Community Bank System has a Sloan Ratio of -2.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Community Bank System Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Community Bank System's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Community Bank System (Community Bank System) 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.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CBU has been successfully added to your 