Incitec Pivot (ASX:IPL) Sloan Ratio % : 3.23% (As of Sep. 2023)

Incitec Pivot Sloan Ratio % Chart

Incitec Pivot Annual Data
	Trend	Sep14	Sep15	Sep16	Sep17	Sep18	Sep19	Sep20	Sep21	Sep22	Sep23
Sloan Ratio %		Get a 7-Day Free Trial					0.84	-0.46	-1.69	4.56	3.23

Incitec Pivot Semi-Annual Data
	Mar14	Sep14	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Sloan Ratio %	Get a 7-Day Free Trial															-1.69	1.80	4.56	2.79	3.23

Competitive Comparison of Incitec Pivot's Sloan Ratio %

For the Specialty Chemicals subindustry, Incitec Pivot'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.

Incitec Pivot's Sloan Ratio % Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Incitec Pivot's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Incitec Pivot's Sloan Ratio % falls into.

Incitec Pivot 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.

Incitec Pivot's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as

Incitec Pivot's Sloan Ratio for the quarter that ended in Sep. 2023 is calculated as

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Incitec Pivot's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 353.6 (Mar. 2023 ) + 206.4 (Sep. 2023 ) = A$560 Mil.
Incitec Pivot's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 147.6 (Mar. 2023 ) + 553.2 (Sep. 2023 ) = A$701 Mil.
Incitec Pivot's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -212.9 (Mar. 2023 ) + -268.9 (Sep. 2023 ) = A$-482 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.

Incitec Pivot  (ASX:IPL) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Incitec Pivot has a Sloan Ratio of 3.23%, indicating the company is in the safe zone and there is no funny business with accruals.

Incitec Pivot Sloan Ratio % Related Terms

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Incitec Pivot (ASX:IPL) Business Description