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.
De'Longhi SPA's Sloan Ratio for the quarter that ended in Mar. 2024 was 0.00%.
As of Mar. 2024, De'Longhi SPA has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
De'Longhi SPA Sloan Ratio % Historical Data
The historical data trend for De'Longhi SPA'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 De'Longhi SPA's Sloan Ratio %
For the Furnishings, Fixtures & Appliances subindustry, De'Longhi SPA'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.
De'Longhi SPA's Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, De'Longhi SPA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where De'Longhi SPA's Sloan Ratio % falls into.
De'Longhi SPA 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.
De'Longhi SPA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
De'Longhi SPA's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 47.655 (Jun. 2023 ) + 63.515 (Sep. 2023 ) + 117.968 (Dec. 2023 ) + 55.761 (Mar. 2024 ) = $285 Mil.
De'Longhi SPA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 150.563 (Jun. 2023 ) + -65.069 (Sep. 2023 ) + 527.952 (Dec. 2023 ) + -47.935 (Mar. 2024 ) = $566 Mil.
De'Longhi SPA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -41.842 (Jun. 2023 ) + 0 (Sep. 2023 ) + 0 (Dec. 2023 ) + -355.217 (Mar. 2024 ) = $-397 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.
De'Longhi SPA (OTCPK:DELHF) 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 Mar. 2024, De'Longhi SPA has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
De'Longhi SPA Sloan Ratio % Related Terms
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De'Longhi SPA (De'Longhi SPA) Business Description
De'Longhi SPA is an Italy-based company that is principally engaged in designing, producing, and selling small domestic appliances. The company's products consist of coffeemakers, cooking and food products, ironing products, floor-care products, air conditioners and air treatment products, heating products, and others. The company generates the majority of its revenue from coffeemakers and cooking and food preparation products. It offers products under four brands: De'Longhi, Kenwood, Nutribullet, Magic Bullet,Braun, and Ariete. Products under the De'Longhi brand contribute over half of total revenue. The company has a business presence across the world, including Europe, America, Australia and New Zealand, Asia, and elsewhere, with Europe its largest market.
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