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.
Celsius Holdings's Sloan Ratio for the quarter that ended in Sep. 2024 was 2.78%.
As of Sep. 2024, Celsius Holdings has a Sloan Ratio of 2.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Celsius Holdings Sloan Ratio % Historical Data
The historical data trend for Celsius Holdings'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 Celsius Holdings's Sloan Ratio %
For the Beverages - Non-Alcoholic subindustry, Celsius Holdings'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.
Celsius Holdings's Sloan Ratio % Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, Celsius Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Celsius Holdings's Sloan Ratio % falls into.
Celsius Holdings 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.
Celsius Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Celsius Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 50.116 (Dec. 2023 ) + 77.811 (Mar. 2024 ) + 79.783 (Jun. 2024 ) + 6.356 (Sep. 2024 ) = $214 Mil.
Celsius Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 5.172 (Dec. 2023 ) + 134.649 (Mar. 2024 ) + 39.643 (Jun. 2024 ) + 12.934 (Sep. 2024 ) = $192 Mil.
Celsius Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -4.746 (Dec. 2023 ) + -4.525 (Mar. 2024 ) + -9.214 (Jun. 2024 ) + -7.244 (Sep. 2024 ) = $-26 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.
Celsius Holdings (NAS:CELH) 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 Sep. 2024, Celsius Holdings has a Sloan Ratio of 2.78%, indicating the company is in the safe zone and there is no funny business with accruals.
Celsius Holdings Sloan Ratio % Related Terms
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Celsius Holdings plays in the energy drink subsegment of the global nonalcoholic beverage market, with 96% of revenue concentrated in North America. Celsius' products contain natural ingredients and a metabolism-enhancing formulation, appealing to fitness and active lifestyle enthusiasts. The firm's portfolio includes its namesake Celsius Originals beverages, Celsius Essentials line (containing aminos), and Celsius On-the-Go powder packets. Celsius dedicates its efforts to branding and innovation, while it utilizes third parties for the manufacturing, packaging, and distribution of its products. In 2022, Celsius forged a 20-year distribution agreement with PepsiCo, which holds an 8.5% stake in the business.
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