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.
Innovative Designs's Sloan Ratio for the quarter that ended in Jan. 2024 was 0.00%.
As of Jan. 2024, Innovative Designs has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Innovative Designs Sloan Ratio % Historical Data
The historical data trend for Innovative Designs'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 Innovative Designs's Sloan Ratio %
For the Apparel Retail subindustry, Innovative Designs'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.
Innovative Designs's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Innovative Designs's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Innovative Designs's Sloan Ratio % falls into.
Innovative Designs 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.
Innovative Designs's Sloan Ratio for the fiscal year that ended in Oct. 2023 is calculated as
Innovative Designs's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was -0.113 (Apr. 2023 ) + -0.084 (Jul. 2023 ) + -0.046 (Oct. 2023 ) + -0.063 (Jan. 2024 ) = $-0.31 Mil.
Innovative Designs's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -0.043 (Apr. 2023 ) + 0.049 (Jul. 2023 ) + -0.11 (Oct. 2023 ) + -0.123 (Jan. 2024 ) = $-0.23 Mil.
Innovative Designs's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -0.04 (Apr. 2023 ) + -0.073 (Jul. 2023 ) + 0.072 (Oct. 2023 ) + 0 (Jan. 2024 ) = $-0.04 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.
Innovative Designs (OTCPK:IVDN) 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 Jan. 2024, Innovative Designs has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Innovative Designs Sloan Ratio % Related Terms
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Innovative Designs (Innovative Designs) Business Description
Innovative Designs Inc markets cold-weather recreational and industrial clothing products, as well as house wrap, which is made from INSULTEX, a low density foamed polyethylene with buoyancy, scent block and thermal resistant properties. The business activity of the firm is operated through two segments Apparel and Housewrap. The Apparel segment offers a range of cold weather apparel and related items. The Housewrap segment includes its INSULTEX House Wrap and its own seam tape. It generates maximum revenue from the Housewrap segment.
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