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.
Shoe Carnival's Sloan Ratio for the quarter that ended in Jan. 2024 was 0.50%.
As of Jan. 2024, Shoe Carnival has a Sloan Ratio of 0.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Shoe Carnival Sloan Ratio % Historical Data
The historical data trend for Shoe Carnival'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 Shoe Carnival's Sloan Ratio %
For the Apparel Retail subindustry, Shoe Carnival'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.
Shoe Carnival's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Shoe Carnival's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Shoe Carnival's Sloan Ratio % falls into.
Shoe Carnival 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.
Shoe Carnival's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Shoe Carnival's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 16.526 (Apr. 2023 ) + 19.441 (Jul. 2023 ) + 21.861 (Oct. 2023 ) + 15.52 (Jan. 2024 ) = $73 Mil.
Shoe Carnival's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 2.052 (Apr. 2023 ) + 20.3 (Jul. 2023 ) + 46.998 (Oct. 2023 ) + 53.406 (Jan. 2024 ) = $123 Mil.
Shoe Carnival's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -15.026 (Apr. 2023 ) + -15.644 (Jul. 2023 ) + -13.002 (Oct. 2023 ) + -10.967 (Jan. 2024 ) = $-55 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.
Shoe Carnival (NAS:SCVL) 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, Shoe Carnival has a Sloan Ratio of 0.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Shoe Carnival Sloan Ratio % Related Terms
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Shoe Carnival (Shoe Carnival) Business Description
Shoe Carnival Inc is a family footwear retailer that offers a broad assortment of dress, casual and athletic footwear for men, women, and children with an emphasis on national name brands such as Nike, Skechers, Adidas, Puma, HEYDUDE, Converse, Vans, and Crocs. It operates a retail-focused business model that aims to deliver the footwear shopping experience with the national name brands desired by its customers. Its bricks-first, omnichannel approach provides customers easy access to a wide assortment of branded footwear for work, athletics, daily activities, and special events via a choice of delivery channel.
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