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.
Berry Global Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.10%.
As of Dec. 2023, Berry Global Group has a Sloan Ratio of -2.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Berry Global Group Sloan Ratio % Historical Data
The historical data trend for Berry Global 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.
Competitive Comparison of Berry Global Group's Sloan Ratio %
For the Packaging & Containers subindustry, Berry Global 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.
Berry Global Group's Sloan Ratio % Distribution in the Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Berry Global Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Berry Global Group's Sloan Ratio % falls into.
Berry Global Group 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.
Berry Global Group's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
Berry Global Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 174 (Mar. 2023 ) + 143 (Jun. 2023 ) + 186 (Sep. 2023 ) + 59 (Dec. 2023 ) = $562 Mil.
Berry Global Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 401 (Mar. 2023 ) + 322 (Jun. 2023 ) + 1125 (Sep. 2023 ) + -199 (Dec. 2023 ) = $1,649 Mil.
Berry Global Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -262 (Mar. 2023 ) + -175 (Jun. 2023 ) + -128 (Sep. 2023 ) + -183 (Dec. 2023 ) = $-748 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.
Berry Global Group (NYSE:BERY) 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, Berry Global Group has a Sloan Ratio of -2.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Berry Global Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Berry Global Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Berry Global Group (Berry Global Group) Business Description
Berry global Group Inc is a leading global supplier of plastic packaging products mainly sold to consumer-oriented end markets. The four business segments are consumer packaging international, consumer packaging North America, engineered materials, and health, hygiene, and specialties. The company primarily uses plastic resin as its raw material, purchased from a variety of suppliers. The majority of revenue comes from consumer packaging international due to the acquisition of RPC, which expanded the geographical areas in which the company operates. The consumer packaging segment consists of closures and dispensing systems, pharmaceutical devices and packaging, bottles and canisters, polythene films, recycling, containers, and technical components.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BERY has been successfully added to your 