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.
Charles River Laboratories International's Sloan Ratio for the quarter that ended in Dec. 2023 was 4.32%.
As of Dec. 2023, Charles River Laboratories International has a Sloan Ratio of 4.32%, indicating the company is in the safe zone and there is no funny business with accruals.
Charles River Laboratories International Sloan Ratio % Historical Data
The historical data trend for Charles River Laboratories International'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.
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Charles River Laboratories International Annual Data
For the Diagnostics & Research subindustry, Charles River Laboratories International'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.
Charles River Laboratories International Sloan Ratio % Distribution
For the Medical Diagnostics & Research industry and Healthcare sector, Charles River Laboratories International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Charles River Laboratories International's Sloan Ratio % falls into.
Charles River Laboratories International 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.
Charles River Laboratories International's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Charles River Laboratories International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 103.131 (Mar. 2023 ) + 97.02 (Jun. 2023 ) + 87.389 (Sep. 2023 ) + 187.084 (Dec. 2023 ) = $475 Mil.
Charles River Laboratories International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 109.383 (Mar. 2023 ) + 148.122 (Jun. 2023 ) + 205.45 (Sep. 2023 ) + 220.943 (Dec. 2023 ) = $684 Mil.
Charles River Laboratories International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -168.618 (Mar. 2023 ) + -76.609 (Jun. 2023 ) + -79.557 (Sep. 2023 ) + -238.371 (Dec. 2023 ) = $-563 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.
Charles River Laboratories International (NYSE:CRL) 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, Charles River Laboratories International has a Sloan Ratio of 4.32%, indicating the company is in the safe zone and there is no funny business with accruals.
Charles River Laboratories International Sloan Ratio % Related Terms
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Charles River Laboratories International (Charles River Laboratories International) Business Description
Charles River Laboratories was founded in 1947 and is a leading provider of drug discovery and development services. The company's research model & services segment is the leading provider of animal models for laboratory testing, which breeds and delivers animal research models with specific genetic characteristics for preclinical studies around the world. The discovery & safety assessment segment includes services required to take a drug through the early development process, including discovery services. The manufacturing support segment includes microbial solutions, which provides in vitro (non-animal) testing products, biologics testing services, and avian vaccine services.
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