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.
IHS Markit's Sloan Ratio for the quarter that ended in Nov. 2021 was 1.89%.
As of Nov. 2021, IHS Markit has a Sloan Ratio of 1.89%, indicating the company is in the safe zone and there is no funny business with accruals.
IHS Markit Sloan Ratio % Historical Data
The historical data trend for IHS Markit'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 IHS Markit's Sloan Ratio %
For the Consulting Services subindustry, IHS Markit'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.
IHS Markit's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, IHS Markit's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where IHS Markit's Sloan Ratio % falls into.
IHS Markit 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.
IHS Markit's Sloan Ratio for the fiscal year that ended in Nov. 2021 is calculated as
IHS Markit's Net Income for the trailing twelve months (TTM) ended in Nov. 2021 was 149.3 (Feb. 2021 ) + 159 (May. 2021 ) + 161.3 (Aug. 2021 ) + 737.2 (Nov. 2021 ) = $1,207 Mil.
IHS Markit's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2021 was 244.5 (Feb. 2021 ) + 372 (May. 2021 ) + 420.7 (Aug. 2021 ) + 449 (Nov. 2021 ) = $1,486 Mil.
IHS Markit's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2021 was -263.8 (Feb. 2021 ) + -70.2 (May. 2021 ) + -111 (Aug. 2021 ) + -153.4 (Nov. 2021 ) = $-598 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.
IHS Markit (NYSE:INFO) 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 Nov. 2021, IHS Markit has a Sloan Ratio of 1.89%, indicating the company is in the safe zone and there is no funny business with accruals.
IHS Markit Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of IHS Markit's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
INFO has been successfully added to your 