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IPD Group (ASX:IPG) Sloan Ratio % : 9.46% (As of Dec. 2023)


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What is IPD Group 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.

IPD Group's Sloan Ratio for the quarter that ended in Dec. 2023 was 9.46%.

As of Dec. 2023, IPD Group has a Sloan Ratio of 9.46%, indicating the company is in the safe zone and there is no funny business with accruals.


IPD Group Sloan Ratio % Historical Data

The historical data trend for IPD Group'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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IPD Group Sloan Ratio % Chart

IPD Group Annual Data
Trend Jun21 Jun22 Jun23
Sloan Ratio %
- 3.24 7.71

IPD Group Semi-Annual Data
Dec21 Jun22 Dec22 Jun23 Dec23
Sloan Ratio % - - 5.32 7.71 9.46

Competitive Comparison of IPD Group's Sloan Ratio %

For the Specialty Industrial Machinery subindustry, IPD Group'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.


IPD Group's Sloan Ratio % Distribution in the Industrial Products Industry

For the Industrial Products industry and Industrials sector, IPD Group's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where IPD Group's Sloan Ratio % falls into.



IPD Group 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.

IPD Group's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as

Sloan Ratio=(Net Income (A: Jun. 2023 )-Cash Flow from Operations (A: Jun. 2023 )
-Cash Flow from Investing (A: Jun. 2023 ))/Total Assets (A: Jun. 2023 )
=(16.077-7.42
--2.1)/139.607
=7.71%

IPD Group'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 )
=(17.6-8.374
--10.182)/205.181
=9.46%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. IPD Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 8.055 (Jun. 2023 ) + 9.545 (Dec. 2023 ) = A$17.6 Mil.
IPD Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 6.139 (Jun. 2023 ) + 2.235 (Dec. 2023 ) = A$8.4 Mil.
IPD Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.088 (Jun. 2023 ) + -9.094 (Dec. 2023 ) = A$-10.2 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.


IPD Group  (ASX:IPG) 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, IPD Group has a Sloan Ratio of 9.46%, indicating the company is in the safe zone and there is no funny business with accruals.


IPD Group Sloan Ratio % Related Terms

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IPD Group (ASX:IPG) Business Description

Traded in Other Exchanges
N/A
Address
43-47 Newton Road, Wetherill Park, Sydney, NSW, AUS, 2164
IPD Group Ltd serves the electrical industry. The company's core focus is power distribution, power monitoring, industrial control, renewables, test and measurement, and services, across a range of verticals such as power generation, commercial, hospitality, infrastructure, and sports and leisure facilities. Its segment includes Products division and Services division. The company generates maximum revenue from the Products division segment. The company's product division consists of five different types of product categories namely, Power distribution, Industrial and motor control, Automation and industrial communication, Power monitoring, Electric vehicle solutions.