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.
Cal-Maine Foods's Sloan Ratio for the quarter that ended in Feb. 2024 was -1.06%.
As of Feb. 2024, Cal-Maine Foods has a Sloan Ratio of -1.06%, indicating the company is in the safe zone and there is no funny business with accruals.
Cal-Maine Foods Sloan Ratio % Historical Data
The historical data trend for Cal-Maine Foods'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 Cal-Maine Foods's Sloan Ratio %
For the Farm Products subindustry, Cal-Maine Foods'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.
Cal-Maine Foods's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Cal-Maine Foods's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cal-Maine Foods's Sloan Ratio % falls into.
Cal-Maine Foods 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.
Cal-Maine Foods's Sloan Ratio for the fiscal year that ended in May. 2023 is calculated as
Cal-Maine Foods's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 110.931 (May. 2023 ) + 0.926 (Aug. 2023 ) + 17.009 (Nov. 2023 ) + 146.712 (Feb. 2024 ) = $276 Mil.
Cal-Maine Foods's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 156.501 (May. 2023 ) + 23.685 (Aug. 2023 ) + 49.967 (Nov. 2023 ) + 163.952 (Feb. 2024 ) = $394 Mil.
Cal-Maine Foods's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was 22.509 (May. 2023 ) + 80.88 (Aug. 2023 ) + -48.078 (Nov. 2023 ) + -151.24 (Feb. 2024 ) = $-96 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.
Cal-Maine Foods (NAS:CALM) 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, Cal-Maine Foods has a Sloan Ratio of -1.06%, indicating the company is in the safe zone and there is no funny business with accruals.
Cal-Maine Foods Sloan Ratio % Related Terms
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Cal-Maine Foods (Cal-Maine Foods) Business Description
Cal-Maine Foods Inc produces and sells shell eggs. Its main market is the United States. The company's product portfolio contains nutritionally enhanced, cage-free, organic, and brown eggs. Cal-Maine Foods markets the shell eggs to a diverse group of customers, including grocery-store chains, club stores, and food service distributors. The company's brands are Egg-Land's, Land O' Lakes, Farmhouse, and 4-Grain. The Company has one reportable operating segment, which is the production, grading, packaging, marketing and distribution of shell eggs.
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