What is ChoiceOne Financial Services Sloan Ratio %?
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, ChoiceOne Financial Services has a Sloan Ratio of 4.62%, indicating the company is in the safe zone and there is no funny business with accruals.
ChoiceOne Financial Services 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 ChoiceOne Financial Services's Sloan Ratio %
For the Banks - Regional subindustry, ChoiceOne Financial Services'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.
ChoiceOne Financial Services's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, ChoiceOne Financial Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ChoiceOne Financial Services's Sloan Ratio % falls into.
ChoiceOne Financial Services 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.
ChoiceOne Financial Services's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 5.213 (Jun. 2023 ) + 5.122 (Sep. 2023 ) + 5.293 (Dec. 2023 ) + 5.634 (Mar. 2024 ) = $21.26 Mil.
ChoiceOne Financial Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 16.042 (Jun. 2023 ) + 32.119 (Sep. 2023 ) + -10.848 (Dec. 2023 ) + 15.314 (Mar. 2024 ) = $52.63 Mil.
ChoiceOne Financial Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -48.014 (Jun. 2023 ) + -29.156 (Sep. 2023 ) + -85.277 (Dec. 2023 ) + 7.614 (Mar. 2024 ) = $-154.83 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.
ChoiceOne Financial Services (NAS:COFS) 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, ChoiceOne Financial Services has a Sloan Ratio of 4.62%, indicating the company is in the safe zone and there is no funny business with accruals.
ChoiceOne Financial Services Sloan Ratio % Related Terms
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ChoiceOne Financial Services (ChoiceOne Financial Services) Business Description
ChoiceOne Financial Services Inc is a full-service banking institution. It is engaged in the business of providing personal and business banking solutions, borrowing solutions, and treasury notes and bonds services. The bank's product and services portfolio consist of time, savings and demand deposits, safe deposit services, automated transaction machine services, commercial and consumer loans, commercial lending to business, industry, agricultural, construction, inventory, and real estate categories. Its primary market area is Kent, Muskegon, Newaygo, and Ottawa counties in western Michigan, and Lapeer, Macomb, and St. Clair counties in southeastern Michigan in the communities where the Bank's respective offices are located.
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