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.
* 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 Innovative Food Holdings's Sloan Ratio %
For the Food Distribution subindustry, Innovative Food Holdings'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.
Innovative Food Holdings's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Innovative Food Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Innovative Food Holdings's Sloan Ratio % falls into.
Innovative Food Holdings 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.
Innovative Food Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Innovative Food Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -2.829 (Mar. 2023 ) + 0.013 (Jun. 2023 ) + 0.135 (Sep. 2023 ) + -1.675 (Dec. 2023 ) = $-4.36 Mil.
Innovative Food Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -3.192 (Mar. 2023 ) + 1.312 (Jun. 2023 ) + -0.316 (Sep. 2023 ) + 1.761 (Dec. 2023 ) = $-0.44 Mil.
Innovative Food Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.008 (Mar. 2023 ) + -0.024 (Jun. 2023 ) + -0.026 (Sep. 2023 ) + 0.023 (Dec. 2023 ) = $-0.04 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.
Innovative Food Holdings (OTCPK:IVFH) 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, Innovative Food Holdings has a Sloan Ratio of -18.22%, indicating there is a warning stage of accrual build up.
Innovative Food Holdings Sloan Ratio % Related Terms
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Innovative Food Holdings (Innovative Food Holdings) Business Description
Innovative Food Holdings Inc through its subsidiaries is engaged in the distribution of perishables and specialty food products. Its customers include restaurants, hotels, country clubs, national chain accounts, casinos, hospitals, and catering houses. The company distributes perishable and specialty food and food-related products, including origin-specific seafood, domestic and imported meats, exotic game and poultry, artisanal cheeses, freshly prepared meals, caviar, wild and cultivated mushrooms, micro-greens, organic farmed and manufactured food products, estate-bottled olive oils and aged vinegar.
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