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.
American Independence's Sloan Ratio for the quarter that ended in Jun. 2016 was 34.90%.
As of Jun. 2016, American Independence has a Sloan Ratio of 34.90%, indicating there is a warning stage of accrual build up.
American Independence Sloan Ratio % Historical Data
The historical data trend for American Independence'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 American Independence's Sloan Ratio %
For the Insurance - Life subindustry, American Independence'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.
American Independence's Sloan Ratio % Distribution in the Insurance Industry
For the Insurance industry and Financial Services sector, American Independence's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where American Independence's Sloan Ratio % falls into.
American Independence 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.
American Independence's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
American Independence's Net Income for the trailing twelve months (TTM) ended in Jun. 2016 was 1.641 (Sep. 2015 ) + 0.279 (Dec. 2015 ) + 114.203 (Mar. 2016 ) + 1.327 (Jun. 2016 ) = $117.5 Mil.
American Independence's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 6.587 (Sep. 2015 ) + 3.247 (Dec. 2015 ) + -6.18 (Mar. 2016 ) + -3.392 (Jun. 2016 ) = $0.3 Mil.
American Independence's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2016 was -5.072 (Sep. 2015 ) + -3.237 (Dec. 2015 ) + 136.528 (Mar. 2016 ) + -123.091 (Jun. 2016 ) = $5.1 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.
American Independence (NAS:AMIC) 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 Jun. 2016, American Independence has a Sloan Ratio of 34.90%, indicating there is a warning stage of accrual build up.
American Independence Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of American Independence's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
American Independence (American Independence) Business Description
American Independence Corp is a Delaware corporation. The Company is an insurance holding Company, which provides specialized health coverage and related services to commercial customers and individuals. The Company focuses on niche health products and/or narrowly defined distribution channels in the United States. It's wholly owned subsidiary, Independence American Insurance Company, markets its products through IHC Risk Solutions, LLC, IHC Specialty Benefits, Inc., and IPA Family, LLC, which are subsidiaries of AMIC, and through independent brokers, producers and agents. Independence American is licensed to write property and/or casualty insurance in all 50 states and the District of Columbia, and has an A- (Excellent) rating from A.M. Best Company, Inc. Risk Solutions is a full-service direct writer of medical stop-loss insurance for self-insured employer groups. Risk Solutions has offices near Hartford, Connecticut and Philadelphia, Pennsylvania, and markets and underwrites employer medical stop-loss and group life mainly for Standard Security Life Insurance Company of New York. It also writes, to a much lesser extent, for three other carriers, including Madison National Life Insurance Company, Inc. and Independence American. Independence Holding Company and its subsidiaries including, among others, Standard Security Life and Madison National Life are collectively referred to as "IHC". Independence American writes group important medical, medical stop-loss, crucial medical plans for individuals and families, short-term medical, and dental, and began writing pet insurance in 2012.Independence American competes with many larger insurance and reinsurance companies and managed care organizations. Risk Solutions competes with many other managing general underwriters, insurance companies, and MCOs. AMIC is an insurance holding company; as such, AMIC and its subsidiaries are subject to regulation and supervision by multiple state insurance regulators, including the Office of the Insurance Commissioner of the State of Delaware.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
AMIC has been successfully added to your 