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.
Energizer Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was -4.95%.
As of Mar. 2024, Energizer Holdings has a Sloan Ratio of -4.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Energizer Holdings Sloan Ratio % Historical Data
The historical data trend for Energizer Holdings'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 Energizer Holdings's Sloan Ratio %
For the Electrical Equipment & Parts subindustry, Energizer Holdings'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.
Energizer Holdings's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Energizer Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Energizer Holdings's Sloan Ratio % falls into.
Energizer Holdings 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.
Energizer Holdings's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Energizer Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 29.351 (Jun. 2023 ) + 18.459 (Sep. 2023 ) + 1.742 (Dec. 2023 ) + 29.808 (Mar. 2024 ) = €79 Mil.
Energizer Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 79.47 (Jun. 2023 ) + 92.669 (Sep. 2023 ) + 163.318 (Dec. 2023 ) + 33.856 (Mar. 2024 ) = €369 Mil.
Energizer Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -15.414 (Jun. 2023 ) + -20.052 (Sep. 2023 ) + -34.021 (Dec. 2023 ) + -25.3 (Mar. 2024 ) = €-95 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.
Energizer Holdings (FRA:EGG) 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, Energizer Holdings has a Sloan Ratio of -4.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Energizer Holdings Sloan Ratio % Related Terms
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Energizer Holdings Inc makes and distributes household batteries, specialty batteries, and lighting products. Energizer offers batteries using lithium, alkaline, carbon-zinc, nickel-metal hydride, zinc-air, and silver oxide technologies. These products are sold under the Energizer, Rayovac, Varta and Eveready brands at performance and premium price segments. It also offers auto care products in the appearance, fragrance, performance, and air conditioning recharge product categories. The company operates in two geographical segments: Americas and International, of which the majority of its revenue is derived from the Americas segment.
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