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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.
Insurance House PSC's Sloan Ratio for the quarter that ended in Sep. 2023 was 12.36%.
As of Sep. 2023, Insurance House PSC has a Sloan Ratio of 12.36%, indicating there is a warning stage of accrual build up.
Insurance House PSC (ADX:IH) 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. 2023, Insurance House PSC has a Sloan Ratio of 12.36%, indicating there is a warning stage of accrual build up.
Insurance House PSC Sloan Ratio % Related Terms
Insurance House PSC Sloan Ratio % Historical Data
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The historical data trend for Insurance House PSC'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.
ADX:IH vs BRK.A, AIG, ACGL: Sloan Ratio % Comparison
For the Insurance - Diversified subindustry, Insurance House PSC'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.
Insurance House PSC Sloan Ratio % vs Insurance Industry
For the Insurance industry and Financial Services sector, Insurance House PSC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Insurance House PSC's Sloan Ratio % falls into.
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.
Insurance House PSC's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Insurance House PSC's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 16.2 (Dec. 2022 ) + -15.708 (Mar. 2023 ) + -18.137 (Jun. 2023 ) + -5.7 (Sep. 2023 ) = د.إ-23.3 Mil.
Insurance House PSC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -12.745 (Dec. 2022 ) + -24.975 (Mar. 2023 ) + -26.374 (Jun. 2023 ) + -16.068 (Sep. 2023 ) = د.إ-80.2 Mil.
Insurance House PSC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -12.576 (Dec. 2022 ) + 4.273 (Mar. 2023 ) + 14.535 (Jun. 2023 ) + 18.051 (Sep. 2023 ) = د.إ24.3 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.
Insurance House PSC (ADX:IH) has a Sloan Ratio % of 12.36% as of Sep. 2023. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Insurance House PSC and its competitors.
Is Insurance House PSC's Sloan Ratio % too high?
Insurance House PSC's current Sloan Ratio % is 12.36%. Overall, Insurance House PSC has a GF Score™ of 5/100, reflecting its overall financial health beyond just this single metric.
How does Insurance House PSC's Sloan Ratio % compare to BRK.A and AIG?
Insurance House PSC's Sloan Ratio % of 12.36% can be compared against companies in the Insurance industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for an Insurance company?
A good Sloan Ratio % depends on the Insurance industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Insurance House PSC and its competitors. Insurance House PSC's current Sloan Ratio % is 12.36%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Insurance House PSC stock overvalued right now?
Insurance House PSC (ADX:IH) has a current Sloan Ratio % of 12.36%. The current Sloan Ratio % is 12.36%. Insurance House PSC's overall GF Score™ is 5/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Insurance House PSC (ADX:IH), the current Sloan Ratio % is 12.36% as of Sep. 2023. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Insurance House PSC provides various non-life insurance products in the United Arab Emirates. The products and services offered by the company include accidents and civil responsibility insurance, land, marine and air transportation, dangers insurance and health insurance. The company is organized into two business segments comprising Underwriting of general insurance business and Investments. Underwriting of general insurance business segment incorporates all classes of general insurance, fire, marine, motor, general accident and medical. Investments segment incorporates investments in UAE marketable equity securities, term deposits with banks, overseas managed portfolios, and other securities.
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