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.
IGM Financial's Sloan Ratio for the quarter that ended in Dec. 2023 was 7.86%.
As of Dec. 2023, IGM Financial has a Sloan Ratio of 7.86%, indicating the company is in the safe zone and there is no funny business with accruals.
IGM Financial Sloan Ratio % Historical Data
The historical data trend for IGM Financial'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 IGM Financial's Sloan Ratio %
For the Asset Management subindustry, IGM Financial'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.
IGM Financial's Sloan Ratio % Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, IGM Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where IGM Financial's Sloan Ratio % falls into.
IGM Financial 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.
IGM Financial's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
IGM Financial's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 278.695 (Mar. 2023 ) + 104.02 (Jun. 2023 ) + 155.019 (Sep. 2023 ) + 312.759 (Dec. 2023 ) = $850 Mil.
IGM Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 81.688 (Mar. 2023 ) + 200.761 (Jun. 2023 ) + 170.405 (Sep. 2023 ) + 170.095 (Dec. 2023 ) = $623 Mil.
IGM Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -359.633 (Mar. 2023 ) + -748.387 (Jun. 2023 ) + -98.225 (Sep. 2023 ) + 341.034 (Dec. 2023 ) = $-865 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.
IGM Financial (OTCPK:IGIFF) 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, IGM Financial has a Sloan Ratio of 7.86%, indicating the company is in the safe zone and there is no funny business with accruals.
IGM Financial Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of IGM Financial's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
IGM Financial (IGM Financial) Business Description
IGM Financial is the largest non-bank-affiliated asset manager in Canada. The firm is part of the Power Financial group of companies, which includes Great-West Life, London Life, and Canada Life. IGM has two main operating divisions—asset management (operated through Mackenzie Investments) and wealth management (via its Investors Group Wealth Management subsidiary)—that provide investment management products and services. IGM had CAD 215.3 billion in assets under management, or AUM, and CAD 35.0 billion in assets under advisement, or AUA, at the end of October 2023. Investment Planning Counsel is now being accounted for as a discontinued operation, having been sold earlier this year, with the deal closed in November 2023.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
IGIFF has been successfully added to your 