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.
Coastal Contacts's Sloan Ratio for the quarter that ended in Jan. 2014 was 6.05%.
As of Jan. 2014, Coastal Contacts has a Sloan Ratio of 6.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Coastal Contacts Sloan Ratio % Historical Data
The historical data trend for Coastal Contacts'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 Coastal Contacts's Sloan Ratio %
For the Medical Instruments & Supplies subindustry, Coastal Contacts'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.
Coastal Contacts's Sloan Ratio % Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Coastal Contacts's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Coastal Contacts's Sloan Ratio % falls into.
Coastal Contacts 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.
Coastal Contacts's Sloan Ratio for the fiscal year that ended in Oct. 2013 is calculated as
Coastal Contacts's Net Income for the trailing twelve months (TTM) ended in Jan. 2014 was -5.265 (Apr. 2013 ) + -1.949 (Jul. 2013 ) + -2.073 (Oct. 2013 ) + -2.846 (Jan. 2014 ) = €-12.1 Mil.
Coastal Contacts's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2014 was -3.273 (Apr. 2013 ) + -2.034 (Jul. 2013 ) + -3.428 (Oct. 2013 ) + -3.828 (Jan. 2014 ) = €-12.6 Mil.
Coastal Contacts's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2014 was -0.286 (Apr. 2013 ) + -1.072 (Jul. 2013 ) + -0.646 (Oct. 2013 ) + -1.171 (Jan. 2014 ) = €-3.2 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.
Coastal Contacts (FRA:C9R1) 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. 2014, Coastal Contacts has a Sloan Ratio of 6.05%, indicating the company is in the safe zone and there is no funny business with accruals.
Coastal Contacts Sloan Ratio % Related Terms
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Coastal Contacts Inc. was incorporated under the Canada Business Corporations Act on December 14, 2000. The Company is an online retailer of vision care products. It is a direct-to-consumer retailer of vision care products and services. The Company sells contact lenses, eyeglasses and related products mainly through the Company's internet websites, although customers may also place orders over the telephone. It has operations and distribution centers in North America, Europe and Australia. The Company sells contact lenses manufactured by multinational companies such as Johnson and Johnson Inc., CIBA Vision Corporation (a division of Alcon), Bausch & Lomb Inc. and Coopervision Inc. It sells eyeglasses, which are mainly assembled in the Company's own laboratories, composed of frames and lenses purchased from a variety of different suppliers. The frames it uses in its eyeglasses include both branded frames and the Company's own private label frames such as Derek Cardigan, Kam Dhillon, Ltede and Joseph Marc. The Company also sells a variety of vision related products such as sunglasses and contact lens solutions including its own Healthy Eyes brand multipurpose contact lens solution for soft contact lenses. It offers substantially all of the soft contact lenses produced by the contact lens manufacturers, including Johnson & Johnson Inc., CIBA Vision Corporation, Bausch & Lomb Inc. and Coopervision Inc. The Company conducts all of its product fulfillment operations from the Company's distribution facilities in Vancouver, British Columbia, Canada; Stockholm, Sweden; Blaine, Washington and Sydney, Australia.
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