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.
The Dixie Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -10.68%.
As of Dec. 2023, The Dixie Group has a Sloan Ratio of -10.68%, indicating there is a warning stage of accrual build up.
The Dixie Group Sloan Ratio % Historical Data
The historical data trend for The Dixie Group'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 The Dixie Group's Sloan Ratio %
For the Textile Manufacturing subindustry, The Dixie Group'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.
The Dixie Group's Sloan Ratio % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, The Dixie Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Dixie Group's Sloan Ratio % falls into.
The Dixie Group 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.
The Dixie Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
The Dixie Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -1.758 (Mar. 2023 ) + -1.726 (Jun. 2023 ) + -2.394 (Sep. 2023 ) + 3.16 (Dec. 2023 ) = $-2.7 Mil.
The Dixie Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -4.059 (Mar. 2023 ) + 7.253 (Jun. 2023 ) + 0.68 (Sep. 2023 ) + -1.255 (Dec. 2023 ) = $2.6 Mil.
The Dixie Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -0.347 (Mar. 2023 ) + -0.23 (Jun. 2023 ) + -0.149 (Sep. 2023 ) + 15.809 (Dec. 2023 ) = $15.1 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.
The Dixie Group (NAS:DXYN) 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, The Dixie Group has a Sloan Ratio of -10.68%, indicating there is a warning stage of accrual build up.
The Dixie Group Sloan Ratio % Related Terms
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The Dixie Group (The Dixie Group) Business Description
The Dixie Group Inc is carpet and rug mills company. Its businesses consist principally of marketing, manufacturing and selling finished carpet, rugs, and luxury vinyl tile in the domestic floor covering market. The company has one reportable segment, Floor covering. The company sells floor covering products in both residential and commercial applications. Additionally, the company provides manufacturing support to its carpet businesses through its separate processing operations. Its business is primarily concentrated in areas of the soft floor covering market segment. The company provides its products under the brand of Fabrica, Masland Residential, Dixie Home, Atlas Carpet Mills, Masland Contract, and Hospitality.
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