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.
Conagra Brands's Sloan Ratio for the quarter that ended in Feb. 2024 was -2.19%.
As of Feb. 2024, Conagra Brands has a Sloan Ratio of -2.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Conagra Brands Sloan Ratio % Historical Data
The historical data trend for Conagra Brands'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 Conagra Brands's Sloan Ratio %
For the Packaged Foods subindustry, Conagra Brands'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.
Conagra Brands's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Conagra Brands's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Conagra Brands's Sloan Ratio % falls into.
Conagra Brands 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.
Conagra Brands's Sloan Ratio for the fiscal year that ended in May. 2023 is calculated as
Conagra Brands's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 37.5 (May. 2023 ) + 319.7 (Aug. 2023 ) + 286.2 (Nov. 2023 ) + 308.6 (Feb. 2024 ) = $952 Mil.
Conagra Brands's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 292 (May. 2023 ) + 443.5 (Aug. 2023 ) + 411.1 (Nov. 2023 ) + 676.7 (Feb. 2024 ) = $1,823 Mil.
Conagra Brands's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -94.7 (May. 2023 ) + -138.4 (Aug. 2023 ) + -65.5 (Nov. 2023 ) + -91.7 (Feb. 2024 ) = $-390 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.
Conagra Brands (NYSE:CAG) 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 Feb. 2024, Conagra Brands has a Sloan Ratio of -2.19%, indicating the company is in the safe zone and there is no funny business with accruals.
Conagra Brands Sloan Ratio % Related Terms
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Conagra Brands (Conagra Brands) Business Description
Conagra Brands is a packaged food company that operates predominantly in the United States (over 90% of revenue and profits). Most of its revenue comes from frozen food, including brands like Marie Callender's, Healthy Choice, Banquet, and Birds Eye. Conagra also sells snacks, shelf-stable staples, and refrigerated food through brands like Duncan Hines, Hunt's, Slim Jim, Vlasic, Orville Redenbacher's, Reddi-wip, Wish-Bone, and Chef Boyardee. The company primarily sells through the U.S. retail channel, with just 8% of fiscal 2023 revenue coming from international markets and 9% from foodservice.
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