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.
ICL Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.73%.
As of Dec. 2023, ICL Group has a Sloan Ratio of -0.73%, indicating the company is in the safe zone and there is no funny business with accruals.
ICL Group Sloan Ratio % Historical Data
The historical data trend for ICL Group'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.
Competitive Comparison of ICL Group's Sloan Ratio %
For the Agricultural Inputs subindustry, ICL Group'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.
ICL Group's Sloan Ratio % Distribution in the Agriculture Industry
For the Agriculture industry and Basic Materials sector, ICL Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ICL Group's Sloan Ratio % falls into.
ICL Group 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.
ICL Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
ICL Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 280 (Mar. 2023 ) + 163 (Jun. 2023 ) + 137 (Sep. 2023 ) + 67 (Dec. 2023 ) = $647 Mil.
ICL Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 382 (Mar. 2023 ) + 391 (Jun. 2023 ) + 407 (Sep. 2023 ) + 415 (Dec. 2023 ) = $1,595 Mil.
ICL Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -204 (Mar. 2023 ) + -205 (Jun. 2023 ) + -189 (Sep. 2023 ) + -265 (Dec. 2023 ) = $-863 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.
ICL Group (NYSE:ICL) 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, ICL Group has a Sloan Ratio of -0.73%, indicating the company is in the safe zone and there is no funny business with accruals.
ICL Group Sloan Ratio % Related Terms
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ICL Group Ltd is a manufacturer of products based on minerals. The firm is comprised of four segments: phosphate solutions, potash, industrial products, and growing solutions. These segments all contribute to the company's development of agriculture, food, and engineered material products and services. The company mines and manufactures potash and phosphates to be used as ingredients in fertilizers and serve as a component in the pharmaceutical and food additives industries. It is also engaged in industrial additives and materials, including flame retardants, phosphate salts, specialty phosphate blends, purified phosphoric acid, electronic-grade specialty phosphoric acids. Its geographical segments are Europe, Asia, North and South America, and the Rest of the world.
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