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.
Innophos Holdings's Sloan Ratio for the quarter that ended in Sep. 2019 was -3.40%.
As of Sep. 2019, Innophos Holdings has a Sloan Ratio of -3.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Innophos Holdings Sloan Ratio % Historical Data
The historical data trend for Innophos Holdings'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 Innophos Holdings's Sloan Ratio %
For the Specialty Chemicals subindustry, Innophos Holdings'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.
Innophos Holdings's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Innophos Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Innophos Holdings's Sloan Ratio % falls into.
Innophos Holdings 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.
Innophos Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
Innophos Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2019 was 4.82 (Dec. 2018 ) + 8.694 (Mar. 2019 ) + 1.401 (Jun. 2019 ) + 6.451 (Sep. 2019 ) = $21.4 Mil.
Innophos Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2019 was 38.248 (Dec. 2018 ) + -9.474 (Mar. 2019 ) + 26.255 (Jun. 2019 ) + 7.882 (Sep. 2019 ) = $62.9 Mil.
Innophos Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2019 was 13.83 (Dec. 2018 ) + -9.924 (Mar. 2019 ) + -5.913 (Jun. 2019 ) + -9.739 (Sep. 2019 ) = $-11.7 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.
Innophos Holdings (NAS:IPHS) 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 Sep. 2019, Innophos Holdings has a Sloan Ratio of -3.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Innophos Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Innophos Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Innophos Holdings (Innophos Holdings) Business Description
Innophos Holdings Inc is a holding company that manufactures and sells through its subsidiaries a variety of ingredients used in the production of food, beverages, dietary supplements, pharmaceuticals, and oral care products. Innophos ingredients are made primarily from specialty phosphates. The company organizes itself into three segments namely Food, Health and Nutrition; Industrial Specialties and Other. The Food, Health and Nutrition segment contribute the maximum revenue. The company operates in U.S., Canada, Mexico and other countries.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
IPHS has been successfully added to your 