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.
Indus Gas's Sloan Ratio for the quarter that ended in Sep. 2023 was -1.24%.
As of Sep. 2023, Indus Gas has a Sloan Ratio of -1.24%, indicating the company is in the safe zone and there is no funny business with accruals.
Indus Gas Sloan Ratio % Historical Data
The historical data trend for Indus Gas'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 Indus Gas's Sloan Ratio %
For the Oil & Gas E&P subindustry, Indus Gas'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.
Indus Gas's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Indus Gas's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Indus Gas's Sloan Ratio % falls into.
Indus Gas 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.
Indus Gas's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Indus Gas's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 14.87 (Mar. 2023 ) + 10.299 (Sep. 2023 ) = £25.17 Mil.
Indus Gas's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 26.19 (Mar. 2023 ) + 24.676 (Sep. 2023 ) = £50.87 Mil.
Indus Gas's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -2.958 (Mar. 2023 ) + -8.878 (Sep. 2023 ) = £-11.84 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.
Indus Gas (LSE:INDI) 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 Sep. 2023, Indus Gas has a Sloan Ratio of -1.24%, indicating the company is in the safe zone and there is no funny business with accruals.
Indus Gas Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Indus Gas's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Indus Gas Ltd is an oil and gas exploration and development company. It is mainly engaged in exploring, developing, producing, distributing, and marketing hydrocarbons including natural gas initially in India. The company holds an interest in on-shore Block RJ-ON/6 situated in Indus Basin. Its products include natural gas and by-product condensate. The Company considers that it operates in a single operating segment the production and sale of gas. Geographically, it derives a majority of its revenue from Asia.
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