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.
Identiv's Sloan Ratio for the quarter that ended in Sep. 2024 was -35.62%.
As of Sep. 2024, Identiv has a Sloan Ratio of -35.62%, indicating there is a warning stage of accrual build up.
Identiv Sloan Ratio % Historical Data
The historical data trend for Identiv'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.
For the Building Products & Equipment subindustry, Identiv'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.
Identiv's Sloan Ratio % Distribution in the Construction Industry
For the Construction industry and Industrials sector, Identiv's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Identiv's Sloan Ratio % falls into.
Identiv 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.
Identiv's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Identiv's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -1.604 (Dec. 2023 ) + -4.558 (Mar. 2024 ) + -6.216 (Jun. 2024 ) + 85.949 (Sep. 2024 ) = $73.57 Mil.
Identiv's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 4.771 (Dec. 2023 ) + -1.301 (Mar. 2024 ) + -0.993 (Jun. 2024 ) + -7.216 (Sep. 2024 ) = $-4.74 Mil.
Identiv's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -1.145 (Dec. 2023 ) + -0.232 (Mar. 2024 ) + -0.135 (Jun. 2024 ) + 142.888 (Sep. 2024 ) = $141.38 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.
Identiv (NAS:INVE) 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. 2024, Identiv has a Sloan Ratio of -35.62%, indicating there is a warning stage of accrual build up.
Identiv Sloan Ratio % Related Terms
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Identiv Inc is a security technology company. It secures and manages access to physical places, things, and information. The company has two reportable segments namely the Premises segment which includes solutions to address the premises security market for government and enterprise, including access control, video surveillance, analytics, customer experience, and other applications. Its Identity segment includes products and solutions enabling secure access to information serving the logical access and cyber security market and protecting assets and objects in the IoT with RFID. Geographically, it generates maximum revenue from the Americas and also has a presence in Europe and the Middle East, and Asia-Pacific. The company derives the majority of revenue from the Identity segment.
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