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.
Big Lots's Sloan Ratio for the quarter that ended in Jan. 2024 was -15.32%.
As of Jan. 2024, Big Lots has a Sloan Ratio of -15.32%, indicating there is a warning stage of accrual build up.
Big Lots Sloan Ratio % Historical Data
The historical data trend for Big Lots'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 Big Lots's Sloan Ratio %
For the Discount Stores subindustry, Big Lots'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.
Big Lots's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Big Lots's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Big Lots's Sloan Ratio % falls into.
Big Lots 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.
Big Lots's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Big Lots's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was -206.073 (Apr. 2023 ) + -249.837 (Jul. 2023 ) + 4.743 (Oct. 2023 ) + -30.709 (Jan. 2024 ) = $-482 Mil.
Big Lots's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -168.938 (Apr. 2023 ) + 18.327 (Jul. 2023 ) + -248.521 (Oct. 2023 ) + 147.172 (Jan. 2024 ) = $-252 Mil.
Big Lots's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -12.481 (Apr. 2023 ) + -7.897 (Jul. 2023 ) + 314.701 (Oct. 2023 ) + -14.812 (Jan. 2024 ) = $280 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.
Big Lots (NYSE:BIG) 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, Big Lots has a Sloan Ratio of -15.32%, indicating there is a warning stage of accrual build up.
Big Lots Sloan Ratio % Related Terms
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Big Lots Inc is principally engaged in operating discount retail stores. The company provides a broad range of merchandise, including food, consumables, soft home products, hard home products, furniture, electronics and accessories, and seasonal products. The company sources the merchandise from traditional and close-out channels. In addition to merchandise, the company sells gift cards, issues merchandise credits, and more. The company operates stores throughout the United States, with around one-third of its stores in California, Texas, Ohio, and Florida.
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