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McColl's Retail Group (LSE:MCLS) Sloan Ratio % : -2.66% (As of May. 2021)


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What is McColl's Retail Group Sloan Ratio %?

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.

McColl's Retail Group's Sloan Ratio for the quarter that ended in May. 2021 was -2.66%.

As of May. 2021, McColl's Retail Group has a Sloan Ratio of -2.66%, indicating the company is in the safe zone and there is no funny business with accruals.


McColl's Retail Group Sloan Ratio % Historical Data

The historical data trend for McColl's Retail Group'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.

* Premium members only.

McColl's Retail Group Sloan Ratio % Chart

McColl's Retail Group Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.44 20.19 -11.42 -27.28 -8.16

McColl's Retail Group Semi-Annual Data
Nov11 Nov12 May13 Nov13 May14 Nov14 May15 Nov15 May16 Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -7.60 -27.28 -21.65 -8.16 -2.66

Competitive Comparison of McColl's Retail Group's Sloan Ratio %

For the Grocery Stores subindustry, McColl's Retail Group'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.


McColl's Retail Group's Sloan Ratio % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, McColl's Retail Group's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where McColl's Retail Group's Sloan Ratio % falls into.



McColl's Retail Group 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.

McColl's Retail Group's Sloan Ratio for the fiscal year that ended in Nov. 2020 is calculated as

Sloan Ratio=(Net Income (A: Nov. 2020 )-Cash Flow from Operations (A: Nov. 2020 )
-Cash Flow from Investing (A: Nov. 2020 ))/Total Assets (A: Nov. 2020 )
=(-2.7-49
--5.8)/562.3
=-8.16%

McColl's Retail Group's Sloan Ratio for the quarter that ended in May. 2021 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: May. 2021 )
=(-8-15.1
--8.6)/546
=-2.66%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. McColl's Retail Group's Net Income for the trailing twelve months (TTM) ended in May. 2021 was -1.7 (Nov. 2020 ) + -6.3 (May. 2021 ) = £-8 Mil.
McColl's Retail Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in May. 2021 was 10.1 (Nov. 2020 ) + 5 (May. 2021 ) = £15 Mil.
McColl's Retail Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in May. 2021 was -1.7 (Nov. 2020 ) + -6.9 (May. 2021 ) = £-9 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.


McColl's Retail Group  (LSE:MCLS) 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.

According to How to Beat the Market with the Sloan Ratio:

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 May. 2021, McColl's Retail Group has a Sloan Ratio of -2.66%, indicating the company is in the safe zone and there is no funny business with accruals.


McColl's Retail Group Sloan Ratio % Related Terms

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McColl's Retail Group (LSE:MCLS) Business Description

Traded in Other Exchanges
N/A
Address
One London Road, Ground Floor West, Brentwood, Essex, GBR, CM14 4QW
McColl's Retail Group PLC is a retailer operator of convenience and newsagent stores. The company's products and services include everyday groceries, milk, baked beans, fruit pots, snacks, and ready meals, Lotto, Paypoint, and beers, wines, and spirits. The group operates more than 800 convenience stores and approximately 400 newsagent stores. It derives most of the revenue from convenience stores.

McColl's Retail Group (LSE:MCLS) Headlines

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