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.
Albertsons's Sloan Ratio for the quarter that ended in Nov. 2024 was 0.00%.
As of Nov. 2024, Albertsons has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Albertsons Sloan Ratio % Historical Data
The historical data trend for Albertsons'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 Albertsons's Sloan Ratio %
For the Grocery Stores subindustry, Albertsons'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.
Albertsons's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Albertsons's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Albertsons's Sloan Ratio % falls into.
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.
Albertsons's Sloan Ratio for the fiscal year that ended in Feb. 2024 is calculated as
Albertsons's Net Income for the trailing twelve months (TTM) ended in Nov. 2024 was 250.5 (Feb. 2024 ) + 240.7 (May. 2024 ) + 145.5 (Aug. 2024 ) + 400.6 (Nov. 2024 ) = $1,037 Mil.
Albertsons's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2024 was 928.7 (Feb. 2024 ) + 960.9 (May. 2024 ) + 413.2 (Aug. 2024 ) + 548 (Nov. 2024 ) = $2,851 Mil.
Albertsons's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2024 was -417.9 (Feb. 2024 ) + -538 (May. 2024 ) + -387.3 (Aug. 2024 ) + -491.2 (Nov. 2024 ) = $-1,834 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.
Albertsons (NYSE:ACI) 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 Nov. 2024, Albertsons has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Albertsons Sloan Ratio % Related Terms
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Albertsons is the second largest supermarket operator in the United States with more than 2,200 stores across a variety of banners. About 80% of the firm's sales stem from non-perishable and fresh food, of which 25% comes from its portfolio of private brands. The company operates fuel centers and pharmacies at about 20% and 75% of its store locations, respectively. Albertsons went public in 2020 following years of ownership under private equity firm Cerberus Capital Management, which still owns about a fourth of outstanding shares.
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