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.
Empire Co's Sloan Ratio for the quarter that ended in Jul. 2024 was -3.84%.
As of Jul. 2024, Empire Co has a Sloan Ratio of -3.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Empire Co Sloan Ratio % Historical Data
The historical data trend for Empire Co'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 Empire Co's Sloan Ratio %
For the Grocery Stores subindustry, Empire Co'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.
Empire Co's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Empire Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Empire Co's Sloan Ratio % falls into.
Empire Co 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.
Empire Co's Sloan Ratio for the fiscal year that ended in Apr. 2024 is calculated as
Empire Co's Net Income for the trailing twelve months (TTM) ended in Jul. 2024 was 132.074 (Oct. 2023 ) + 99.978 (Jan. 2024 ) + 108.893 (Apr. 2024 ) + 151.524 (Jul. 2024 ) = $492 Mil.
Empire Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jul. 2024 was 190.198 (Oct. 2023 ) + 498.249 (Jan. 2024 ) + 406.977 (Apr. 2024 ) + 376.622 (Jul. 2024 ) = $1,472 Mil.
Empire Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jul. 2024 was -92.255 (Oct. 2023 ) + -112.791 (Jan. 2024 ) + -194.603 (Apr. 2024 ) + -106.096 (Jul. 2024 ) = $-506 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.
Empire Co (OTCPK:EMLAF) 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 Jul. 2024, Empire Co has a Sloan Ratio of -3.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Empire Co Sloan Ratio % Related Terms
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Empire Co Ltd key businesses are food retailing, investments, and other operations. The food retailing division operates through Empire's subsidiaries Sobeys, National, Farm Boy, and Longo's, and represents nearly all of the company's income. This segment owns, affiliates, or franchises various stores in different provinces, under retail banners including Sobeys, Safeway, IGA, and Foodland. The company's investment and other operations segment include the investment in Crombie REIT, which is an open-ended Canadian real estate investment trust.
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