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.
Ingles Markets's Sloan Ratio for the quarter that ended in Dec. 2023 was 5.47%.
As of Dec. 2023, Ingles Markets has a Sloan Ratio of 5.47%, indicating the company is in the safe zone and there is no funny business with accruals.
Ingles Markets Sloan Ratio % Historical Data
The historical data trend for Ingles Markets'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 Ingles Markets's Sloan Ratio %
For the Grocery Stores subindustry, Ingles Markets'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.
Ingles Markets's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Ingles Markets's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ingles Markets's Sloan Ratio % falls into.
Ingles Markets 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.
Ingles Markets's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Ingles Markets's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 40.54 (Mar. 2023 ) + 48.26 (Jun. 2023 ) + 52.641 (Sep. 2023 ) + 43.394 (Dec. 2023 ) = $185 Mil.
Ingles Markets's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 37.151 (Mar. 2023 ) + 82.564 (Jun. 2023 ) + 89.434 (Sep. 2023 ) + 15.541 (Dec. 2023 ) = $225 Mil.
Ingles Markets's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -31.395 (Mar. 2023 ) + -45.62 (Jun. 2023 ) + -34.89 (Sep. 2023 ) + -62.388 (Dec. 2023 ) = $-174 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.
Ingles Markets (NAS:IMKTA) 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, Ingles Markets has a Sloan Ratio of 5.47%, indicating the company is in the safe zone and there is no funny business with accruals.
Ingles Markets Sloan Ratio % Related Terms
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Ingles Markets (Ingles Markets) Business Description
Ingles Markets Inc is a U.S.-based company that is principally engaged in operating a supermarket chain. The company operates the business in the southeast United States, mainly in Georgia, North Carolina, South Carolina, and Tennessee, with a few stores in Virginia and Alabama as well. The company locates its stores majorly in suburban areas, small towns, and neighborhood areas. It offers a broad range of goods, including food products, pharmacies, health and beauty care products, and general merchandise. The retail business contributes the majority of the company's revenue. The company's real estate ownership of a material portion of total stores enables it to generate rental income.
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