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.
Idacorp's Sloan Ratio for the quarter that ended in Dec. 2023 was 6.89%.
As of Dec. 2023, Idacorp has a Sloan Ratio of 6.89%, indicating the company is in the safe zone and there is no funny business with accruals.
Idacorp Sloan Ratio % Historical Data
The historical data trend for Idacorp'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.
For the Utilities - Regulated Electric subindustry, Idacorp'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.
Idacorp's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Idacorp's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Idacorp's Sloan Ratio % falls into.
Idacorp 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.
Idacorp's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Idacorp's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 56.098 (Mar. 2023 ) + 68.574 (Jun. 2023 ) + 105.264 (Sep. 2023 ) + 31.259 (Dec. 2023 ) = $261 Mil.
Idacorp's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -90.399 (Mar. 2023 ) + 97.178 (Jun. 2023 ) + 155.252 (Sep. 2023 ) + 104.996 (Dec. 2023 ) = $267 Mil.
Idacorp's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -109.156 (Mar. 2023 ) + -154.643 (Jun. 2023 ) + -148.082 (Sep. 2023 ) + -178.066 (Dec. 2023 ) = $-590 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.
Idacorp (NYSE:IDA) 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, Idacorp has a Sloan Ratio of 6.89%, indicating the company is in the safe zone and there is no funny business with accruals.
Idacorp Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Idacorp's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Idacorp Inc is a holding company that, through its subsidiaries, acts as an electric utility engaged in the generation, transmission, distribution, sale, and purchase of electric energy and capacity. To do this, Idacorp owns and operates a portfolio of hydroelectric, coal-fired, gas-fired, and diesel-fired power plants located across the Northwestern United States. The company's hydroelectric and coal-fired plants are responsible for Majority of its total energy production. Idacorp mainly generates revenue from the sale of electricity to retail and wholesale customers. The Majority of the company's customers are residential consumers living in the Northwestern United States, while commercial and industrial consumers also represent important revenue streams.
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