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 Dec. 2023, Infineon Technologies AG has a Sloan Ratio of 8.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Infineon Technologies AG 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.
Competitive Comparison of Infineon Technologies AG's Sloan Ratio %
For the Semiconductors subindustry, Infineon Technologies AG'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.
Infineon Technologies AG's Sloan Ratio % Distribution in the Semiconductors Industry
For the Semiconductors industry and Technology sector, Infineon Technologies AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Infineon Technologies AG's Sloan Ratio % falls into.
Infineon Technologies AG 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.
Infineon Technologies AG's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Infineon Technologies AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 825 (Mar. 2023 ) + 831 (Jun. 2023 ) + 753 (Sep. 2023 ) + 587 (Dec. 2023 ) = €2,996 Mil.
Infineon Technologies AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 646 (Mar. 2023 ) + 1033 (Jun. 2023 ) + 1652 (Sep. 2023 ) + -147 (Dec. 2023 ) = €3,184 Mil.
Infineon Technologies AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -180 (Mar. 2023 ) + -141 (Jun. 2023 ) + -1334 (Sep. 2023 ) + -804 (Dec. 2023 ) = €-2,459 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.
Infineon Technologies AG (HAM:IFX) 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, Infineon Technologies AG has a Sloan Ratio of 8.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Infineon Technologies AG Sloan Ratio % Related Terms
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Infineon Technologies AG (HAM:IFX) Business Description
Infineon Technologies AG headquartered in Munich, was spun off from German industrial conglomerate Siemens in 2000 and today is one of Europe's largest chipmakers. The company is a leader in the automotive semiconductor market with prominent products used in active safety and powertrain content within vehicles. Infineon is also the market leader in power semiconductors used to deliver voltage within a wide variety of electrical systems. The company operates in four segments: automotive, or ATV, green industrial power, or GIP, power and sensor systems, or PSS, and connected secure systems, or CSS.
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