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.
As of Dec. 2023, Intercontinental Exchange has a Sloan Ratio of 5.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Intercontinental Exchange Sloan Ratio % Historical Data
* 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 Intercontinental Exchange's Sloan Ratio %
For the Financial Data & Stock Exchanges subindustry, Intercontinental Exchange'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.
Intercontinental Exchange's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Intercontinental Exchange's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Intercontinental Exchange's Sloan Ratio % falls into.
Intercontinental Exchange 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.
Intercontinental Exchange's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Intercontinental Exchange's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 655 (Mar. 2023 ) + 799 (Jun. 2023 ) + 541 (Sep. 2023 ) + 373 (Dec. 2023 ) = $2,368 Mil.
Intercontinental Exchange's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 653 (Mar. 2023 ) + 1152 (Jun. 2023 ) + 768 (Sep. 2023 ) + 969 (Dec. 2023 ) = $3,542 Mil.
Intercontinental Exchange's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 2045 (Mar. 2023 ) + -901 (Jun. 2023 ) + -10547 (Sep. 2023 ) + 606 (Dec. 2023 ) = $-8,797 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.
Intercontinental Exchange (NYSE:ICE) 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, Intercontinental Exchange has a Sloan Ratio of 5.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Intercontinental Exchange Sloan Ratio % Related Terms
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Intercontinental Exchange (Intercontinental Exchange) Business Description
Intercontinental Exchange is a vertically integrated operator of financial exchanges and provides ancillary data products. Though the company is probably best known for its ownership of the New York Stock Exchange, which it acquired in 2013, ICE operates a large derivatives exchange, too. The company's largest commodity futures product is the ICE Brent crude futures contract. In addition to the exchanges business, which is about 56% of net revenue, Intercontinental Exchange has used a series of acquisitions to create its mortgage technology business (15% of net revenue) and fixed-income and data services segment (29% of net revenue).
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