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.
Aristocrat Group's Sloan Ratio for the quarter that ended in Apr. 2016 was 0.00%.
As of Apr. 2016, Aristocrat Group has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Aristocrat Group (OTCPK:ASCC) 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 Apr. 2016, Aristocrat Group has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Aristocrat Group Sloan Ratio % Related Terms
Aristocrat Group Sloan Ratio % Historical Data
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The historical data trend for Aristocrat Group'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.
ASCC vs CMHZ, THST, ICNB: Sloan Ratio % Comparison
For the Beverages - Wineries & Distilleries subindustry, Aristocrat Group'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.
Aristocrat Group Sloan Ratio % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Aristocrat Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aristocrat Group'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.
Aristocrat Group's Sloan Ratio for the fiscal year that ended in Jul. 2015 is calculated as
Aristocrat Group's Net Income for the trailing twelve months (TTM) ended in Apr. 2016 was -0.667 (Jul. 2015 ) + -0.692 (Oct. 2015 ) + -0.543 (Jan. 2016 ) + -0.427 (Apr. 2016 ) = $-2.33 Mil.
Aristocrat Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Apr. 2016 was -0.309 (Jul. 2015 ) + -0.538 (Oct. 2015 ) + -0.158 (Jan. 2016 ) + -0.137 (Apr. 2016 ) = $-1.14 Mil.
Aristocrat Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Apr. 2016 was 0 (Jul. 2015 ) + 0 (Oct. 2015 ) + 0 (Jan. 2016 ) + 0 (Apr. 2016 ) = $0.00 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.
Aristocrat Group (ASCC) has a Sloan Ratio % of 0.00% as of Apr. 2016. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Aristocrat Group and its competitors.
Is Aristocrat Group's Sloan Ratio % too high?
Aristocrat Group's current Sloan Ratio % is 0.00%.
How does Aristocrat Group's Sloan Ratio % compare to CMHZ and THST?
Aristocrat Group's Sloan Ratio % of 0.00% can be compared against companies in the Beverages - Alcoholic industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Beverages - Alcoholic company?
A good Sloan Ratio % depends on the Beverages - Alcoholic industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Aristocrat Group and its competitors. Aristocrat Group's current Sloan Ratio % is 0.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aristocrat Group stock overvalued right now?
Aristocrat Group (ASCC) has a current Sloan Ratio % of 0.00%. The current Sloan Ratio % is 0.00%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Aristocrat Group (ASCC), the current Sloan Ratio % is 0.00% as of Apr. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Aristocrat Group Corp is a United States based company engaged in the distilled spirits industry. It is engaged in the business of brand management and development in the beverage and lifestyle space, with a focus on alcoholic beverage brands in the U.S. The company's principal beverage products-Merica Beer and RWB Vodka, which are manufactured and packaged through third-party partners. Its core operations encompass licensing agreements (manufacture, marketing and distribution), brand development and visual identity, retail and e-commerce distribution, and product innovation/portfolio expansion.
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