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.
Marks & Spencer Group's Sloan Ratio for the quarter that ended in Sep. 2023 was -3.86%.
As of Sep. 2023, Marks & Spencer Group has a Sloan Ratio of -3.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Marks & Spencer Group Sloan Ratio % Historical Data
The historical data trend for Marks & Spencer 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 Marks & Spencer Group's Sloan Ratio %
For the Department Stores subindustry, Marks & Spencer 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.
Marks & Spencer Group's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Marks & Spencer Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Marks & Spencer Group's Sloan Ratio % falls into.
Marks & Spencer 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.
Marks & Spencer Group's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Marks & Spencer Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 239.442 (Mar. 2023 ) + 257.426 (Sep. 2023 ) = $497 Mil.
Marks & Spencer Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 885.801 (Mar. 2023 ) + 596.782 (Sep. 2023 ) = $1,483 Mil.
Marks & Spencer Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -302.063 (Mar. 2023 ) + -264.975 (Sep. 2023 ) = $-567 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.
Marks & Spencer Group (OTCPK:MAKSY) 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 Sep. 2023, Marks & Spencer Group has a Sloan Ratio of -3.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Marks & Spencer Group Sloan Ratio % Related Terms
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Marks & Spencer Group (Marks & Spencer Group) Business Description
M&S is a British multichannel retailer with stores across Europe, Asia, and the Middle East. The company sells into more than 60 countries from thousands of stores and several websites around the world and offers predominantly own-brand luxury food, clothing, and home products with the majority of sales coming from its U.K. operations. Marks & Spencer operates three business models—owned, franchise, and joint venture—in the U.K. and internationally. The online business globally is delivered through localized owned and franchised websites and partnerships. The food segment includes value products, convenient ready-made meals, and healthy items. The clothing and home division sells own-brand and high-quality womenswear, lingerie, menswear, kidswear, beauty, and home products.
Marks & Spencer Group (Marks & Spencer Group) Headlines
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