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.
Remy Cointreau's Sloan Ratio for the quarter that ended in Sep. 2023 was 6.50%.
As of Sep. 2023, Remy Cointreau has a Sloan Ratio of 6.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Remy Cointreau Sloan Ratio % Historical Data
The historical data trend for Remy Cointreau'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 Remy Cointreau's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Remy Cointreau'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.
Remy Cointreau's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Remy Cointreau's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Remy Cointreau's Sloan Ratio % falls into.
Remy Cointreau 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.
Remy Cointreau'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.
Remy Cointreau's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 74.946 (Mar. 2023 ) + 120.598 (Sep. 2023 ) = $196 Mil.
Remy Cointreau's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 81.156 (Mar. 2023 ) + -56.777 (Sep. 2023 ) = $24 Mil.
Remy Cointreau's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -26.017 (Mar. 2023 ) + -48.559 (Sep. 2023 ) = $-75 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.
Remy Cointreau (OTCPK:REMYF) 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, Remy Cointreau has a Sloan Ratio of 6.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Remy Cointreau Sloan Ratio % Related Terms
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Remy Cointreau (Remy Cointreau) Business Description
Remy Cointreau is the world's second-largest distiller of cognac by volume, with a 15.8% global volume share in 2022, according to Euromonitor. Cognac represented 72% of Remy's sales and 90% of EBIT in the same year. The remainder of Remy's portfolio is made up of much smaller group-owned brands, including Cointreau orange liqueur, Metaxa Greek spirit, Mount Gay rum, Bruichladdich single malt scotch, The Botanist gin, Hautes Glaces French whiskey, and Westland American whiskey. The company also distributes third-party brands and in 2023 entered the fragrance business. Remy is controlled by the Andromede family, which owns 41% equity interest and consolidates the business in the Andromede Group. The Cointreau family owns a further 27%, and 41% of the equity is free float.
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