GURUFOCUS.COM » STOCK LIST » Financial Services » Credit Services » IBL Finance Ltd (NSE:IBLFL) » Definitions » Sloan Ratio %

IBL Finance (NSE:IBLFL) Sloan Ratio % : 51.81% (As of Mar. 2024)


View and export this data going back to 2024. Start your Free Trial

What is IBL Finance 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.

IBL Finance's Sloan Ratio for the quarter that ended in Mar. 2024 was 51.81%.

Warning Sign:

When sloan ratio (51.81)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Mar. 2024, IBL Finance has a Sloan Ratio of 51.81%, indicating earnings are more likely to be made up of accruals.


IBL Finance Sloan Ratio % Historical Data

The historical data trend for IBL Finance'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.

* Premium members only.

IBL Finance Sloan Ratio % Chart

IBL Finance Annual Data
Trend Mar21 Mar22 Mar23 Mar24
Sloan Ratio %
1.53 58.13 44.61 51.81

IBL Finance Semi-Annual Data
Mar21 Mar22 Mar23 Mar24
Sloan Ratio % - 58.13 44.61 51.81

Competitive Comparison of IBL Finance's Sloan Ratio %

For the Credit Services subindustry, IBL Finance'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.


IBL Finance's Sloan Ratio % Distribution in the Credit Services Industry

For the Credit Services industry and Financial Services sector, IBL Finance's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where IBL Finance's Sloan Ratio % falls into.



IBL Finance 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.

IBL Finance's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (A: Mar. 2024 )-Cash Flow from Operations (A: Mar. 2024 )
-Cash Flow from Investing (A: Mar. 2024 ))/Total Assets (A: Mar. 2024 )
=(22.835--133.986
--186.941)/663.55
=51.81%

IBL Finance's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2024 )
=(22.835--133.986
--186.941)/663.55
=51.81%

For company reported annually, GuruFocus uses latest annual data as the TTM data. IBL Finance's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was ₹22.8 Mil.
IBL Finance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was ₹-134.0 Mil.
IBL Finance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was ₹-186.9 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.


IBL Finance  (NSE:IBLFL) 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 Mar. 2024, IBL Finance has a Sloan Ratio of 51.81%, indicating earnings are more likely to be made up of accruals.


IBL Finance Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of IBL Finance's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


IBL Finance Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Ring Road, 1001, World Trade Center, Nr. Udhna Darwaja, Surat, GJ, IND, 395002
IBL Finance Ltd is a fintech-based financial services platform that leverages technology and data science to make lending quick and easy. It has a mobile application that provides instant personal loans which loan up to Rupees 50,000 with tenors of up to 12 months through an entirely digital mobile App-only process. The Company is engaged in one segment only i.e. Loan Segment. The company generates revenue from Interest Income on Loan Portfolio and Loan Processing Fees & Charges.

IBL Finance Headlines

No Headlines