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.
Impex Ferro Tech's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
Warning Sign:
When sloan ratio (-25.56)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Impex Ferro Tech has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Impex Ferro Tech Sloan Ratio % Historical Data
The historical data trend for Impex Ferro Tech'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 Impex Ferro Tech's Sloan Ratio %
For the Other Industrial Metals & Mining subindustry, Impex Ferro Tech'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.
Impex Ferro Tech's Sloan Ratio % Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Impex Ferro Tech's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Impex Ferro Tech's Sloan Ratio % falls into.
Impex Ferro Tech 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.
Impex Ferro Tech's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
Impex Ferro Tech's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 91.133 (Mar. 2023 ) + -35.011 (Jun. 2023 ) + -23.426 (Sep. 2023 ) + -35.295 (Dec. 2023 ) = ₹-2.60 Mil.
Impex Ferro Tech's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = ₹0.00 Mil.
Impex Ferro Tech's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0 (Mar. 2023 ) + 0 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) = ₹0.00 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.
Impex Ferro Tech (BOM:532614) 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, Impex Ferro Tech has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Impex Ferro Tech Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Impex Ferro Tech's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Impex Ferro Tech Ltd is an Indian firm engaged in the business line of manufacturing Ferro Alloys (ferro manganese / silico manganese) and trading in iron and steel products. Its products include silico manganese, high-carbon ferro manganese, and medium-carbon ferro manganese. The company operates in a single segment called Ferro Alloys.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BOM:532614 has been successfully added to your 