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.
Vince Holding's Sloan Ratio for the quarter that ended in Jan. 2024 was -22.98%.
As of Jan. 2024, Vince Holding has a Sloan Ratio of -22.98%, indicating there is a warning stage of accrual build up.
Vince Holding Sloan Ratio % Historical Data
The historical data trend for Vince Holding'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 Vince Holding's Sloan Ratio %
For the Apparel Manufacturing subindustry, Vince Holding'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.
Vince Holding's Sloan Ratio % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Vince Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Vince Holding's Sloan Ratio % falls into.
Vince Holding 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.
Vince Holding's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Vince Holding's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was -0.381 (Apr. 2023 ) + 29.512 (Jul. 2023 ) + 0.983 (Oct. 2023 ) + -4.668 (Jan. 2024 ) = $25.4 Mil.
Vince Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 5.278 (Apr. 2023 ) + -25.438 (Jul. 2023 ) + 7.039 (Oct. 2023 ) + 14.761 (Jan. 2024 ) = $1.6 Mil.
Vince Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was 0.91 (Apr. 2023 ) + 75.713 (Jul. 2023 ) + -0.543 (Oct. 2023 ) + -0.54 (Jan. 2024 ) = $75.5 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.
Vince Holding (NYSE:VNCE) 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 Jan. 2024, Vince Holding has a Sloan Ratio of -22.98%, indicating there is a warning stage of accrual build up.
Vince Holding Sloan Ratio % Related Terms
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Vince Holding (Vince Holding) Business Description
Vince Holding Corp is a fashion brand that is engaged in wholesale and retail delivery of luxury essentials like women's and men's apparel, women's and men's footwear, and handbags. Its offers women's collections of luxurious cashmere sweaters and silk blouses, leather and suede leggings and jackets, dresses, denim, pants, tanks and t-shirts, and a growing assortment of outerwear. It focuses on developing an elevated collection of Vince apparel and accessories to serve the luxurious need of the customer. The company manages its business in three segments namely Vince Wholesale, Vince Direct-to-consumer, and Rebecca Taylor and Parker segment. It operates its e-commerce business through its website. Majority of its revenue generated from Vince Wholesale segment.
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