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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.
As of Jun. 2024, Inner East Community Finance has a Sloan Ratio of -8.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Inner East Community Finance (XNEC:IEC) 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 Jun. 2024, Inner East Community Finance has a Sloan Ratio of -8.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Inner East Community Finance Sloan Ratio % Related Terms
Inner East Community Finance Sloan Ratio % Historical Data
* 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.
XNEC:IEC vs PWR, EME, FIX: Sloan Ratio % Comparison
For the Engineering & Construction subindustry, Inner East Community 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.
Inner East Community Finance Sloan Ratio % vs Construction Industry
For the Construction industry and Industrials sector, Inner East Community Finance's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Inner East Community Finance's Sloan Ratio % falls into.
Inner East Community 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.
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Inner East Community Finance's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was 0.536781 (Dec. 2023 ) + 0.014053 (Jun. 2024 ) = A$0.55 Mil.
Inner East Community Finance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 1.941769 (Dec. 2023 ) + 0.33699 (Jun. 2024 ) = A$2.28 Mil.
Inner East Community Finance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was -0.819933 (Dec. 2023 ) + -0.018147 (Jun. 2024 ) = A$-0.84 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.
Inner East Community Finance (XNEC:IEC) has a Sloan Ratio % of -8.15% as of Jun. 2024. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Inner East Community Finance and its competitors.
Is Inner East Community Finance's Sloan Ratio % too high?
Inner East Community Finance's current Sloan Ratio % is -8.15%. Overall, Inner East Community Finance has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Inner East Community Finance's Sloan Ratio % compare to PWR and EME?
Inner East Community Finance's Sloan Ratio % of -8.15% can be compared against companies in the Construction industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Construction company?
A good Sloan Ratio % depends on the Construction industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Inner East Community Finance and its competitors. Inner East Community Finance's current Sloan Ratio % is -8.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Inner East Community Finance stock overvalued right now?
Inner East Community Finance (XNEC:IEC) has a current Sloan Ratio % of -8.15%. The current Sloan Ratio % is -8.15%. Inner East Community Finance's overall GF Score™ is 17/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Inner East Community Finance (XNEC:IEC), the current Sloan Ratio % is -8.15% as of Jun. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Inner East Community Finance Ltd is engaged in providing community bank branch services under management rights to operate four franchised branches of Bendigo and Adelaide Bank Limited in Canterbury, Surrey Hills, Ashburton, and Balwyn, Victoria. The company focuses on delivering banking and social enterprise services, while maximising profits and returning shareholder value. It offers traditional banking products and services such as home loans, credit cards, accounts, insurance, personal and business loans, etc, and directs a substantial portion of its profits back into the local community through grants and sponsorships.
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Sloan Ratio % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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