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.
Coca-Cola HBC AG's Sloan Ratio for the quarter that ended in Dec. 2023 was -4.84%.
As of Dec. 2023, Coca-Cola HBC AG has a Sloan Ratio of -4.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Coca-Cola HBC AG Sloan Ratio % Historical Data
The historical data trend for Coca-Cola HBC AG'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 Coca-Cola HBC AG's Sloan Ratio %
For the Beverages - Non-Alcoholic subindustry, Coca-Cola HBC AG'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.
Coca-Cola HBC AG's Sloan Ratio % Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Coca-Cola HBC AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Coca-Cola HBC AG's Sloan Ratio % falls into.
Coca-Cola HBC AG 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.
Coca-Cola HBC AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Coca-Cola HBC AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 417.876 (Jun. 2023 ) + 273.501 (Dec. 2023 ) = $691 Mil.
Coca-Cola HBC AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 536.728 (Jun. 2023 ) + 971.974 (Dec. 2023 ) = $1,509 Mil.
Coca-Cola HBC AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 358.722 (Jun. 2023 ) + -654.198 (Dec. 2023 ) = $-295 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.
Coca-Cola HBC AG (OTCPK:CCHGY) 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 Dec. 2023, Coca-Cola HBC AG has a Sloan Ratio of -4.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Coca-Cola HBC AG Sloan Ratio % Related Terms
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Coca-Cola HBC AG (Coca-Cola HBC AG) Business Description
Coca-Cola HBC, or HBC, is the third-largest bottling partner in the Coca-Cola system by volume, behind Coca-Cola FEMSA and Coca-Cola Europacific Partners, or CCEP. In 2022, HBC sold 2.7 billion unit cases of beverages. For context, Coke's largest bottler, Coke FEMSA, sold 3.75 billion unit cases in Latin America, and the second-largest, CCEP, serving Europe, Southeast Asia, and the South Pacific region, sold 3.3 billion unit cases. There is a long tail of Coke distributors, including brewers and independent operators with very small distribution territories.HBC is listed on the LSE. Kar-Tess, a Luxembourg-based holding company, owns 23% of the equity of HBC, and The Coca-Cola Company, or TCCC, holds a further 21%. The remaining 56% is free float.
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