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.
Craft Brew Alliance's Sloan Ratio for the quarter that ended in Jun. 2020 was -1.71%.
As of Jun. 2020, Craft Brew Alliance has a Sloan Ratio of -1.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Craft Brew Alliance Sloan Ratio % Historical Data
The historical data trend for Craft Brew Alliance'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 Craft Brew Alliance's Sloan Ratio %
For the Beverages - Brewers subindustry, Craft Brew Alliance'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.
Craft Brew Alliance's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Craft Brew Alliance's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Craft Brew Alliance's Sloan Ratio % falls into.
Craft Brew Alliance 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.
Craft Brew Alliance's Sloan Ratio for the fiscal year that ended in Dec. 2019 is calculated as
Craft Brew Alliance's Net Income for the trailing twelve months (TTM) ended in Jun. 2020 was -1.224 (Sep. 2019 ) + -6.941 (Dec. 2019 ) + 0.598 (Mar. 2020 ) + 0.424 (Jun. 2020 ) = $-7.1 Mil.
Craft Brew Alliance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2020 was 30.354 (Sep. 2019 ) + -7.466 (Dec. 2019 ) + -7.218 (Mar. 2020 ) + -0.744 (Jun. 2020 ) = $14.9 Mil.
Craft Brew Alliance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2020 was -1.005 (Sep. 2019 ) + -3.788 (Dec. 2019 ) + -6.969 (Mar. 2020 ) + -5.684 (Jun. 2020 ) = $-17.4 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.
Craft Brew Alliance (NAS:BREW) 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 Jun. 2020, Craft Brew Alliance has a Sloan Ratio of -1.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Craft Brew Alliance Sloan Ratio % Related Terms
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Craft Brew Alliance (Craft Brew Alliance) Business Description
Craft Brew Alliance Inc is a craft brewing company and a leader in brewing, and branding American craft beers. The company's brand portfolio consists of Redhook Brewery, Widmer Brothers Brewing, Kona Brewing Company, Omission Beer, Square Mile Cider Company, and Resignation Brewery. The crafts beers are brewed and packed in the location such as Portland, Oregon the Seattle suburb of Woodinville, Washington; Portsmouth, New Hampshire, and Kailua-Kona, Hawaii. Its segments are Beer Related operations and Brewpubs operations. The majority of the revenue is derived from brewing, and domestic and international sales, of craft beers and ciders.
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