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.
United Foods Co PSC's Sloan Ratio for the quarter that ended in Mar. 2024 was -2.82%.
As of Mar. 2024, United Foods Co PSC has a Sloan Ratio of -2.82%, indicating the company is in the safe zone and there is no funny business with accruals.
United Foods Co PSC Sloan Ratio % Historical Data
The historical data trend for United Foods Co PSC'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 United Foods Co PSC's Sloan Ratio %
For the Packaged Foods subindustry, United Foods Co PSC'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.
United Foods Co PSC's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, United Foods Co PSC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where United Foods Co PSC's Sloan Ratio % falls into.
United Foods Co PSC 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.
United Foods Co PSC's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
United Foods Co PSC's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 3.332 (Jun. 2023 ) + 4.773 (Sep. 2023 ) + 11.22 (Dec. 2023 ) + 14.323 (Mar. 2024 ) = د.إ33.6 Mil.
United Foods Co PSC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 23.585 (Jun. 2023 ) + 24.891 (Sep. 2023 ) + 31.266 (Dec. 2023 ) + -2.188 (Mar. 2024 ) = د.إ77.6 Mil.
United Foods Co PSC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -0.722 (Jun. 2023 ) + -1.658 (Sep. 2023 ) + -2.589 (Dec. 2023 ) + -26.575 (Mar. 2024 ) = د.إ-31.5 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.
United Foods Co PSC (DFM:UFC) 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 Mar. 2024, United Foods Co PSC has a Sloan Ratio of -2.82%, indicating the company is in the safe zone and there is no funny business with accruals.
United Foods Co PSC Sloan Ratio % Related Terms
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United Foods Co PSC (DFM:UFC) Business Description
United Foods Co PSC is engaged in manufacturing, processing, and marketing of vegetable ghee, cooking oil, margarine, butter products, and fat including trading of other food products. Geographically, It operates in the United Arab Emirates, GCC other than UAE and the rest of the world, out of which the majority is from the United Arab Emirates. The Company operates under the following brands- Aseel, Nawar, Safi, Mumtaz, Della Terra and Super Sun. The company's business units are Oil & Fats, Frozen & Chilled and Water & Beverages.
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