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.
Calavo Growers's Sloan Ratio for the quarter that ended in Jan. 2025 was -30.50%.
Warning Sign:
When sloan ratio (-35.07)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jan. 2025, Calavo Growers has a Sloan Ratio of -30.50%, indicating earnings are more likely to be made up of accruals.
Calavo Growers Sloan Ratio % Historical Data
The historical data trend for Calavo Growers'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 Calavo Growers's Sloan Ratio %
For the Food Distribution subindustry, Calavo Growers'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.
Calavo Growers's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Calavo Growers's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Calavo Growers'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.
Calavo Growers's Sloan Ratio for the fiscal year that ended in Oct. 2024 is calculated as
Calavo Growers's Net Income for the trailing twelve months (TTM) ended in Jan. 2025 was 6.062 (Apr. 2024 ) + -0.732 (Jul. 2024 ) + -0.139 (Oct. 2024 ) + 4.415 (Jan. 2025 ) = $9.6 Mil.
Calavo Growers's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2025 was 2.092 (Apr. 2024 ) + 11.433 (Jul. 2024 ) + 10.836 (Oct. 2024 ) + -4.427 (Jan. 2025 ) = $19.9 Mil.
Calavo Growers's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2025 was -1.347 (Apr. 2024 ) + -0.142 (Jul. 2024 ) + 82.629 (Oct. 2024 ) + -0.282 (Jan. 2025 ) = $80.9 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.
Calavo Growers (NAS:CVGW) 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 Jan. 2025, Calavo Growers has a Sloan Ratio of -30.50%, indicating earnings are more likely to be made up of accruals.
Calavo Growers Sloan Ratio % Related Terms
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Calavo Growers Inc is in the avocado industry and an expanding provider of value-added fresh food. The group markets and distribute avocados, prepared avocado products, and other perishable foods to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers across the world. The company distributes its products both domestically and internationally and reports its operations in two different business segments: Grown and Prepared. The Grown segment consists of fresh avocados, tomatoes, and papayas. The Prepared segment comprises all other products including fresh-cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, and salsa sold at retail and food service as well as avocado pulp sold to food service.
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