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.
Signature Bank's Sloan Ratio for the quarter that ended in Dec. 2022 was 15.06%.
As of Dec. 2022, Signature Bank has a Sloan Ratio of 15.06%, indicating there is a warning stage of accrual build up.
Signature Bank Sloan Ratio % Historical Data
The historical data trend for Signature Bank'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 Signature Bank's Sloan Ratio %
For the Banks - Regional subindustry, Signature Bank'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.
Signature Bank's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Signature Bank's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Signature Bank's Sloan Ratio % falls into.
Signature Bank 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.
Signature Bank's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Signature Bank's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was 338.534 (Mar. 2022 ) + 339.202 (Jun. 2022 ) + 358.467 (Sep. 2022 ) + 300.846 (Dec. 2022 ) = $1,337 Mil.
Signature Bank's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2022 was -166.847 (Mar. 2022 ) + 405.212 (Jun. 2022 ) + 621.581 (Sep. 2022 ) + 85.731 (Dec. 2022 ) = $946 Mil.
Signature Bank's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2022 was -6609.087 (Mar. 2022 ) + -6195.88 (Jun. 2022 ) + -2222.266 (Sep. 2022 ) + -1199.746 (Dec. 2022 ) = $-16,227 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.
Signature Bank (OTCPK:SBNY) 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. 2022, Signature Bank has a Sloan Ratio of 15.06%, indicating there is a warning stage of accrual build up.
Signature Bank Sloan Ratio % Related Terms
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Signature Bank (Signature Bank) Business Description
Signature Bank is a New York-based commercial bank. It is engaged in offering a wide range of business and personal banking products and services. The operating segments of the company are Commercial banking and Specialty finance. The company operates in New York and derives a majority of its revenue from the Commercial banking segment, which consists principally of commercial real estate lending, fund banking, venture banking, commercial and industrial lending, and commercial deposit gathering activities. Specialty Finance consists of financing and leasing products, including equipment, transportation, taxi medallion, commercial marine, municipal, and national franchise financing and leasing.
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