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Equifax (NYSE:EFX) Sloan Ratio %

: 23.51% (As of Sep. 2022)
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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.

Equifax's Sloan Ratio for the quarter that ended in Sep. 2022 was 23.51%.

Warning Sign:

When sloan ratio (25.43)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Sep. 2022, Equifax has a Sloan Ratio of 23.51%, indicating earnings are more likely to be made up of accruals.


Equifax (NYSE:EFX) Sloan Ratio % Historical Data

The historical data trend for Equifax'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.

Equifax Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.67 1.40 -0.01 0.69 25.43

Equifax Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.04 25.43 21.63 22.46 23.51

Equifax (NYSE:EFX) Sloan Ratio % Competitive Comparison

For the Consulting Services subindustry, Equifax'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.

   

Equifax (NYSE:EFX) Sloan Ratio % Distribution

For the Business Services industry and Industrials sector, Equifax's Sloan Ratio % distribution charts can be found below:

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



Equifax 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.

Equifax's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2021 )-Cash Flow from Operations (A: Dec. 2021 )
-Cash Flow from Investing (A: Dec. 2021 ))/Total Assets (A: Dec. 2021 )
=(744.2-1334.8
--3398.2)/11040.9
=25.43%

Equifax's Sloan Ratio for the quarter that ended in Sep. 2022 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM})
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2022 )
=(710.2-817
--2765)/11308
=23.51%

Equifax's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was 122.1 (Dec. 2021 ) + 221.8 (Mar. 2022 ) + 200.6 (Jun. 2022 ) + 165.7 (Sep. 2022 ) = $710 Mil.
Equifax's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2022 was 385.3 (Dec. 2021 ) + -198.5 (Mar. 2022 ) + 275.3 (Jun. 2022 ) + 354.9 (Sep. 2022 ) = $817 Mil.
Equifax's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2022 was -1957.9 (Dec. 2021 ) + -268.2 (Mar. 2022 ) + -60.5 (Jun. 2022 ) + -478.4 (Sep. 2022 ) = $-2,765 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.


Equifax  (NYSE:EFX) 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 Sep. 2022, Equifax has a Sloan Ratio of 23.51%, indicating earnings are more likely to be made up of accruals.


Equifax Sloan Ratio % Related Terms

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Equifax (NYSE:EFX) Business Description

Equifax logo
Address
1550 Peachtree Street N.W., Atlanta, GA, USA, 30309
Along with Experian and TransUnion, Equifax is one of the leading credit bureaus in the United States. Equifax's credit reports provide credit histories on millions of consumers, and the firm's services are critical to lenders' credit decisions. In addition, about a third of the firm's revenue comes from workforce solutions, which provides income verification and employer human resources services. Equifax generates over 20% of its revenue from outside the United States.
Executives
Nelson Lisa M officer: President-International EQUIFAX INC. 1550 PEACHTREE STREET NW ATLANTA GA 30309
Tillman Audrey B director 1932 WYNNTON RD COLUMBUS GA 31999
Goodwin Melissa D director C/O WRIGHT EXPRESS CORPORATION 97 DARLING AVENUE SOUTH PORTLAND ME 04106
Bindal Sunil officer: SVP, Corp Development EQUIFAX INC. 1550 PEACHTREE STREET NW ATLANTA GA 30309
Parker Lindsay B officer: Chief Marketing Officer EQUIFAX INC 1550 PEACHTREE STREET NW ATLANTA GA 30309
Anderson Beverly J officer: Pres-Global Consumer Solutions 1550 PEACHTREE STREET NW ATLANTA GA 30309
Selander Robert W director MASTERCARD INTERNATIONAL 2000 PURCHASE STREET PURCHASE NY 10577
Marcus Robert D director C/O TIME WARNER CABLE INC. 60 COLUMBUS CIRCLE, 17TH FLOOR NEW YORK NY 10023
Mckinley John A director C/O EQUIFAX INC 1550 PEACHTREE STREET NW ATLANTA GA 30309
Stock Elane B director 351 PHELPS DRIVE IRVING TX 75038
Chaney Carla officer: CVP & Chief HR Officer 5302 LAKE VIEW CLUB DUNWOODY GA 30338
Hough G. Thomas director P.O. BOX 407 LAKELAND FL 33802
Wilson Heather H director 1550 PEACHTREE STREET NW ATLANTA GA 30309
Singh Sid officer: President - USIS 1550 PEACHTREE STREET NW ATLANTA GA 30309
Griggs James M officer: SVP & Corp Controller 1550 PEACHTREE STREET NW ATLANTA GA 30309

Equifax (NYSE:EFX) Headlines

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