GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Compagnie Financiere Richemont SA (OTCPK:CFRHF) » Definitions » Sloan Ratio %

CFRHF (Compagnie Financiere Richemont) Sloan Ratio % : -0.73% (As of Sep. 2024)


View and export this data going back to 2008. Start your Free Trial

What is Compagnie Financiere Richemont Sloan Ratio %?

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.

Compagnie Financiere Richemont's Sloan Ratio for the quarter that ended in Sep. 2024 was -0.73%.

As of Sep. 2024, Compagnie Financiere Richemont has a Sloan Ratio of -0.73%, indicating the company is in the safe zone and there is no funny business with accruals.


Compagnie Financiere Richemont Sloan Ratio % Historical Data

The historical data trend for Compagnie Financiere Richemont'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.

* Premium members only.

Compagnie Financiere Richemont Sloan Ratio % Chart

Compagnie Financiere Richemont Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.01 0.79 -0.72 -5.15 0.52

Compagnie Financiere Richemont Semi-Annual Data
Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 Sep21 Mar22 Sep22 Mar23 Sep23 Mar24 Sep24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -6.12 -4.84 0.34 0.50 -0.73

Competitive Comparison of Compagnie Financiere Richemont's Sloan Ratio %

For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.


Compagnie Financiere Richemont's Sloan Ratio % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Compagnie Financiere Richemont's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Compagnie Financiere Richemont's Sloan Ratio % falls into.



Compagnie Financiere Richemont 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.

Compagnie Financiere Richemont's Sloan Ratio for the fiscal year that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (A: Mar. 2024 )-Cash Flow from Operations (A: Mar. 2024 )
-Cash Flow from Investing (A: Mar. 2024 ))/Total Assets (A: Mar. 2024 )
=(2567.391-5104.348
--2778.261)/46392.391
=0.52%

Compagnie Financiere Richemont's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(1434.388-4679.716
--2900.877)/47003.33
=-0.73%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. Compagnie Financiere Richemont's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 927.174 (Mar. 2024 ) + 507.214 (Sep. 2024 ) = $1,434 Mil.
Compagnie Financiere Richemont's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 3293.478 (Mar. 2024 ) + 1386.238 (Sep. 2024 ) = $4,680 Mil.
Compagnie Financiere Richemont's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -2016.304 (Mar. 2024 ) + -884.573 (Sep. 2024 ) = $-2,901 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.


Compagnie Financiere Richemont  (OTCPK:CFRHF) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Compagnie Financiere Richemont has a Sloan Ratio of -0.73%, indicating the company is in the safe zone and there is no funny business with accruals.


Compagnie Financiere Richemont Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of Compagnie Financiere Richemont's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


Compagnie Financiere Richemont Business Description

Address
50 Chemin de la Chenaie, CP 30, Bellevue, Geneva, CHE, 1293
Richemont is a luxury goods conglomerate with 20 brands. Jewellery and watch brands make up 86% of sales, but the group is also active in accessories, writing instruments, clothing and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for 69% of revenue and vast majority of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, Chloe, and Montblanc.