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.
Usana Health Sciences's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.81%.
As of Dec. 2023, Usana Health Sciences has a Sloan Ratio of 0.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Usana Health Sciences Sloan Ratio % Historical Data
The historical data trend for Usana Health Sciences'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 Usana Health Sciences's Sloan Ratio %
For the Packaged Foods subindustry, Usana Health Sciences'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.
Usana Health Sciences's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Usana Health Sciences's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Usana Health Sciences's Sloan Ratio % falls into.
Usana Health Sciences 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.
Usana Health Sciences's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Usana Health Sciences's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 18.383 (Mar. 2023 ) + 17.292 (Jun. 2023 ) + 11.347 (Sep. 2023 ) + 16.766 (Dec. 2023 ) = $63.8 Mil.
Usana Health Sciences's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 12.833 (Mar. 2023 ) + 9.551 (Jun. 2023 ) + 22.234 (Sep. 2023 ) + 26.023 (Dec. 2023 ) = $70.6 Mil.
Usana Health Sciences's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -3.378 (Mar. 2023 ) + 0.179 (Jun. 2023 ) + -1.454 (Sep. 2023 ) + -7.322 (Dec. 2023 ) = $-12.0 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.
Usana Health Sciences (NYSE:USNA) 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, Usana Health Sciences has a Sloan Ratio of 0.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Usana Health Sciences Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Usana Health Sciences's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Usana Health Sciences (Usana Health Sciences) Business Description
Usana Health Sciences Inc is a U.S.-based company that is principally engaged in developing, manufacturing, and selling science-based nutritional and personal-care products. The company operates through direct selling. It owns a number of product lines, such as Essentials, which contains core vitamin and mineral supplements; Optimizers, which includes targeted supplements for individuals' health and nutritional needs; Foods, which consists of low-glycemic meal replacement shakes, snack bars, and other related products; and Sense Beautiful Science, which contains personal-care products related to skin and hair. The company conducts business worldwide, including Asia-Pacific, the Americas, and Europe.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
USNA has been successfully added to your 