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.
Live Ventures's Sloan Ratio for the quarter that ended in Dec. 2023 was 8.14%.
As of Dec. 2023, Live Ventures has a Sloan Ratio of 8.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Live Ventures Sloan Ratio % Historical Data
The historical data trend for Live Ventures'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 Live Ventures's Sloan Ratio %
For the Home Improvement Retail subindustry, Live Ventures'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.
Live Ventures's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Live Ventures's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Live Ventures's Sloan Ratio % falls into.
Live Ventures 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.
Live Ventures's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Live Ventures's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1.558 (Mar. 2023 ) + 1.06 (Jun. 2023 ) + -4.564 (Sep. 2023 ) + -0.682 (Dec. 2023 ) = $-2.6 Mil.
Live Ventures's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 7.924 (Mar. 2023 ) + 11.828 (Jun. 2023 ) + -0.011 (Sep. 2023 ) + 7.872 (Dec. 2023 ) = $27.6 Mil.
Live Ventures's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -35.547 (Mar. 2023 ) + -1.899 (Jun. 2023 ) + -25.156 (Sep. 2023 ) + -3.189 (Dec. 2023 ) = $-65.8 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.
Live Ventures (NAS:LIVE) 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, Live Ventures has a Sloan Ratio of 8.14%, indicating the company is in the safe zone and there is no funny business with accruals.
Live Ventures Sloan Ratio % Related Terms
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Live Ventures (Live Ventures) Business Description
Live Ventures Inc is a holding company for diversified businesses. It is focused on acquiring and operating profitable companies in various industries. The company operates in the business segments of Retail, which includes direct sales of entertainment and appliance products and services, Flooring Manufacturing, Steel Manufacturing, which includes the sale of steel plates, ground flat stock, and drill rods, and Corporate and Other. It derives key revenue from the Flooring Manufacturing segment which includes the manufacturing of carpets and rugs, yarn products, as well as a reseller of hard surface flooring products. Geographically the activities are carried out throughout the United States.
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