Innovative Payment Solutions (Innovative Payment Solutions) Sloan Ratio % : -416.52% (As of Dec. 2023)

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What is Innovative Payment Solutions 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.

Innovative Payment Solutions's Sloan Ratio for the quarter that ended in Dec. 2023 was -416.52%.

Warning Sign:

When sloan ratio (-416.65)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Dec. 2023, Innovative Payment Solutions has a Sloan Ratio of -416.52%, indicating earnings are more likely to be made up of accruals.

Innovative Payment Solutions Sloan Ratio % Historical Data

The historical data trend for Innovative Payment Solutions'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.

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Innovative Payment Solutions Sloan Ratio % Chart

Innovative Payment Solutions Annual Data

Trend

Oct14

Oct15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

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-2,144.56

-159.23

-230.66

-416.65

Innovative Payment Solutions Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %	Get a 7-Day Free Trial															-230.58	-205.54	-404.05	-681.78	-416.52

Competitive Comparison of Innovative Payment Solutions's Sloan Ratio %

For the Software - Infrastructure subindustry, Innovative Payment Solutions'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.

Innovative Payment Solutions's Sloan Ratio % Distribution in the Software Industry

For the Software industry and Technology sector, Innovative Payment Solutions's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Innovative Payment Solutions's Sloan Ratio % falls into.

Innovative Payment Solutions 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.

Innovative Payment Solutions's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(-5.836	-	-1.417
	-	-1.065)	/	0.805
	=	-416.65%

Innovative Payment Solutions's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(-5.835	-	-1.417
	-	-1.065)	/	0.805
	=	-416.52%

Innovative Payment Solutions's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -0.273 (Mar. 2023 ) + -3.174 (Jun. 2023 ) + -1.015 (Sep. 2023 ) + -1.373 (Dec. 2023 ) = $-5.84 Mil.
Innovative Payment Solutions's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.688 (Mar. 2023 ) + -0.245 (Jun. 2023 ) + -0.156 (Sep. 2023 ) + -0.328 (Dec. 2023 ) = $-1.42 Mil.
Innovative Payment Solutions's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.065 (Mar. 2023 ) + -0.216 (Jun. 2023 ) + -0.795 (Sep. 2023 ) + 0.011 (Dec. 2023 ) = $-1.07 Mil.

Innovative Payment Solutions (OTCPK:IPSI) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Innovative Payment Solutions has a Sloan Ratio of -416.52%, indicating earnings are more likely to be made up of accruals.

Innovative Payment Solutions Sloan Ratio % Related Terms

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Innovative Payment Solutions (Innovative Payment Solutions) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Innovative Payment Solutions Inc (OTCPK:IPSI) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

56B 5th Street, Lot 1, Suite AT, Carmel by the Sea, CA, USA, 93921

Website

https://www.ipsipay.com

Innovative Payment Solutions Inc provides an integrated network of kiosks, terminals, and payment channels that enable consumers to deposit cash, convert it into a digital form, and remit the funds to any merchant in its network quickly and securely.

Executives

Richard Rosenblum	10 percent owner, other: President and CFO	19 HORIZON DRIVE, WAYNE NJ 07470
David F Rios	director	14924 DIDUCA WAY, LOS GATOS CA 95032
Clifford W. Henry	director	PO BOX 1148, ZEPHYR COVE NV 89449-1148
Madisson Gracee Corbett	director	19355 BUSINESS CENTER DRIVE., #9, NORTHRIDGE CA 91324
James W Fuller	director	C/O BAYTREE CAPITAL ASSOCIATES LLC, 40 WALL STREET, 58TH FLOOR, NEW YORK NY 10005
Andrey Novikov	director, officer: CHIEF TECHNOLOGY OFFICER	19355 BUSINESS CENTER DRIVE , #9, NORTHRIDG CA 91324
William D. Corbett	director, officer: Chief Executive Officer	1720 W DIVISION STREET, 3RD FLOOR, CHICAGO IL 606622
Jimmy I Gibbs	10 percent owner	9855 WARREN H. ABERNATHY HIGHWAY, SPARTANBURG SC 29301
Mark John Korb	officer: Chief Financial Officer	1900 GLADES ROAD, SUITE 435, BOCA RATON FL 33431
Gaston Singh Pereira	director, officer: Chairman of the Board and CEO	1900 GLADES ROAD, SUITE 265, BOCA RATON FL 33431
Sarmad Singh Harake	director	1900 GLADES ROAD, SUITE 265, BOCA RATON NY 33431