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.
Loop Industries's Sloan Ratio for the quarter that ended in Nov. 2023 was 21.14%.
As of Nov. 2023, Loop Industries has a Sloan Ratio of 21.14%, indicating there is a warning stage of accrual build up.
Loop Industries Sloan Ratio % Historical Data
The historical data trend for Loop Industries'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 Loop Industries's Sloan Ratio %
For the Specialty Chemicals subindustry, Loop Industries'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.
Loop Industries's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Loop Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Loop Industries's Sloan Ratio % falls into.
Loop Industries 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.
Loop Industries's Sloan Ratio for the fiscal year that ended in Feb. 2023 is calculated as
Loop Industries's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was 5.423 (Feb. 2023 ) + -7.001 (May. 2023 ) + -4.75 (Aug. 2023 ) + -4.244 (Nov. 2023 ) = $-10.57 Mil.
Loop Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was -9.88 (Feb. 2023 ) + -5.504 (May. 2023 ) + -5.513 (Aug. 2023 ) + -3.745 (Nov. 2023 ) = $-24.64 Mil.
Loop Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was 14.284 (Feb. 2023 ) + -2.122 (May. 2023 ) + -3.168 (Aug. 2023 ) + -0.163 (Nov. 2023 ) = $8.83 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.
Loop Industries (NAS:LOOP) 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 Nov. 2023, Loop Industries has a Sloan Ratio of 21.14%, indicating there is a warning stage of accrual build up.
Loop Industries Sloan Ratio % Related Terms
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Loop Industries (Loop Industries) Business Description
Loop Industries Inc is a technology and licensing company whose mission is to accelerate the world's shift toward sustainable plastic and away from dependence on fossil fuels. The company owns patented and proprietary technology that depolymerizes no and low value waste PET plastic and polyester fiber, including plastic bottles and packaging, carpet and polyester textile of any color, transparency or condition and even ocean plastics that have been degraded by the sun and salt, to its base building blocks (monomers). Its monomers are filtered, purified and repolymerized to create virgin-quality Loop branded PET plastic resin and polyester fiber suitable for use in food-grade packaging to be sold to consumer goods companies to help them meet their sustainability objectives.
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