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.
Champion Industries's Sloan Ratio for the quarter that ended in Apr. 2016 was -0.83%.
As of Apr. 2016, Champion Industries has a Sloan Ratio of -0.83%, indicating the company is in the safe zone and there is no funny business with accruals.
Champion Industries Sloan Ratio % Historical Data
The historical data trend for Champion Industries'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 Champion Industries's Sloan Ratio %
For the Business Equipment & Supplies subindustry, Champion Industries'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.
Champion Industries's Sloan Ratio % Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Champion Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Champion Industries's Sloan Ratio % falls into.
Champion Industries 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.
Champion Industries's Sloan Ratio for the fiscal year that ended in Oct. 2015 is calculated as
Champion Industries's Net Income for the trailing twelve months (TTM) ended in Apr. 2016 was -0.652 (Jul. 2015 ) + -0.119 (Oct. 2015 ) + -0.27 (Jan. 2016 ) + -0.081 (Apr. 2016 ) = $-1.12 Mil.
Champion Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2016 was -0.239 (Jul. 2015 ) + 0.843 (Oct. 2015 ) + -0.343 (Jan. 2016 ) + 0.258 (Apr. 2016 ) = $0.52 Mil.
Champion Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2016 was -0.171 (Jul. 2015 ) + -0.888 (Oct. 2015 ) + -0.141 (Jan. 2016 ) + -0.246 (Apr. 2016 ) = $-1.45 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.
Champion Industries (OTCPK:CHMP) 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 Apr. 2016, Champion Industries has a Sloan Ratio of -0.83%, indicating the company is in the safe zone and there is no funny business with accruals.
Champion Industries Sloan Ratio % Related Terms
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Champion Industries (Champion Industries) Business Description
Champion Industries Inc is a commercial printer, business form manufacturer, and supplier of office products and office furniture. The company operates principally in two industry segments organized on the basis of product lines: Printing segment and Office Products and Furniture segment. The Printing segment comprises the production, printing and sale, printed materials including brochures, pamphlets, reports, tags, continuous and other forms principally to commercial customers. The Office Product and Furniture segment are engaged in the sale of office products and office furniture including interior design services. Printing segment is the major revenue contributor to the company.
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