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.
IDEXX Laboratories's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.96%.
As of Dec. 2023, IDEXX Laboratories has a Sloan Ratio of 1.96%, indicating the company is in the safe zone and there is no funny business with accruals.
IDEXX Laboratories Sloan Ratio % Historical Data
The historical data trend for IDEXX Laboratories'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 IDEXX Laboratories's Sloan Ratio %
For the Diagnostics & Research subindustry, IDEXX Laboratories'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.
IDEXX Laboratories's Sloan Ratio % Distribution in the Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, IDEXX Laboratories's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where IDEXX Laboratories's Sloan Ratio % falls into.
IDEXX Laboratories 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.
IDEXX Laboratories's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
IDEXX Laboratories's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 214.054 (Mar. 2023 ) + 224.236 (Jun. 2023 ) + 212.231 (Sep. 2023 ) + 194.521 (Dec. 2023 ) = $845 Mil.
IDEXX Laboratories's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 183.912 (Mar. 2023 ) + 200.314 (Jun. 2023 ) + 272.433 (Sep. 2023 ) + 249.851 (Dec. 2023 ) = $907 Mil.
IDEXX Laboratories's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -39.511 (Mar. 2023 ) + -27.47 (Jun. 2023 ) + -27.838 (Sep. 2023 ) + -30.435 (Dec. 2023 ) = $-125 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.
IDEXX Laboratories (NAS:IDXX) 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, IDEXX Laboratories has a Sloan Ratio of 1.96%, indicating the company is in the safe zone and there is no funny business with accruals.
IDEXX Laboratories Sloan Ratio % Related Terms
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IDEXX Laboratories (IDEXX Laboratories) Business Description
Idexx Laboratories primarily develops, manufactures, and distributes diagnostic products, equipment, and services for pets and livestock. Its key product lines include single-use canine and feline test kits that veterinarians can employ in the office, benchtop chemistry and hematology analyzers for test-panel analysis on-site, reference lab services, and tests to detect and manage disease in livestock. The firm also offers vet practice management software and consulting services to animal hospitals. Idexx gets close to 40% of its revenue from outside the United States.
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