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.
Axfood AB's Sloan Ratio for the quarter that ended in Mar. 2024 was -8.60%.
As of Mar. 2024, Axfood AB has a Sloan Ratio of -8.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Axfood AB Sloan Ratio % Historical Data
The historical data trend for Axfood AB'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 Axfood AB's Sloan Ratio %
For the Grocery Stores subindustry, Axfood AB'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.
Axfood AB's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Axfood AB's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Axfood AB's Sloan Ratio % falls into.
Axfood AB 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.
Axfood AB's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Axfood AB's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 58.686 (Jun. 2023 ) + 65.766 (Sep. 2023 ) + 50.889 (Dec. 2023 ) + 53.884 (Mar. 2024 ) = $229 Mil.
Axfood AB's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 156.373 (Jun. 2023 ) + 128.374 (Sep. 2023 ) + 216.327 (Dec. 2023 ) + 162.804 (Mar. 2024 ) = $664 Mil.
Axfood AB's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -64.908 (Jun. 2023 ) + -27.696 (Sep. 2023 ) + -54.594 (Dec. 2023 ) + -33.905 (Mar. 2024 ) = $-181 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.
Axfood AB (OTCPK:AXFOF) 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, Axfood AB has a Sloan Ratio of -8.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Axfood AB Sloan Ratio % Related Terms
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Axfood AB operates food retail and wholesale businesses in Sweden. Its operating segments include Willys, Hemkop, Dagab, and Snabbgross. The Willys segment operates two discount grocery chains: Willys and Eurocash. Willys is Sweden's primary discount market chain, while Eurocash serves mainly the Norwegian-Swedish border. Hemkop offers a wide range of fresh products for meal solutions. Dagab is engaged in the wholesale purchasing and logistics business. Narlivs operates within this segment as a wholesaler serving independent grocers and convenience retailers. This segment contributes to the majority of the company's revenue. Snabbgross is a restaurant wholesaler, catering primarily to cafes, fast-food establishments, and high-end restaurants.
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