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.
Ross Stores's Sloan Ratio for the quarter that ended in Jan. 2024 was 0.86%.
As of Jan. 2024, Ross Stores has a Sloan Ratio of 0.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Ross Stores Sloan Ratio % Historical Data
The historical data trend for Ross Stores'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.
* Premium members only.
Ross Stores Annual Data
Trend
Jan15
Jan16
Jan17
Jan18
Jan19
Jan20
Jan21
Jan22
Jan23
Jan24
Sloan Ratio %
0.47
-13.80
3.97
3.55
0.86
Ross Stores Quarterly Data
Apr19
Jul19
Oct19
Jan20
Apr20
Jul20
Oct20
Jan21
Apr21
Jul21
Oct21
Jan22
Apr22
Jul22
Oct22
Jan23
Apr23
Jul23
Oct23
Jan24
Sloan Ratio %
3.55
-1.93
-3.44
-2.06
0.86
Competitive Comparison
For the Apparel Retail subindustry, Ross Stores'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.
Ross Stores Sloan Ratio % Distribution
For the Retail - Cyclical industry and Consumer Cyclical sector, Ross Stores's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ross Stores's Sloan Ratio % falls into.
Ross Stores 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.
Ross Stores's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Ross Stores's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 371.191 (Apr. 2023 ) + 446.319 (Jul. 2023 ) + 447.327 (Oct. 2023 ) + 609.683 (Jan. 2024 ) = $1,875 Mil.
Ross Stores's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 413.152 (Apr. 2023 ) + 703.129 (Jul. 2023 ) + 449.454 (Oct. 2023 ) + 948.755 (Jan. 2024 ) = $2,514 Mil.
Ross Stores's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -167.253 (Apr. 2023 ) + -196.206 (Jul. 2023 ) + -176.999 (Oct. 2023 ) + -222.354 (Jan. 2024 ) = $-763 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.
Ross Stores (NAS:ROST) 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 Jan. 2024, Ross Stores has a Sloan Ratio of 0.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Ross Stores Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Ross Stores's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Ross Stores operates as an off-price apparel and accessories retailer with the majority of its sales derived from its Ross Dress for Less banner. The firm opportunistically procures excess brand-name merchandise made available via manufacturing overruns and retail liquidation sales at a 20%-60% discount to full prices. As such, its stores are frequently filled with a vast array of stock-keeping units, each with minimal product depth that creates a treasure hunt shopping experience. The firm's more than 1,750 Ross Dress for Less stores are primarily located in densely populated suburban communities and typically serve middle-income consumers. Ross also operates nearly 350 DD's Discounts chains that target lower-income shoppers.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ROST has been successfully added to your 