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.
Doverddlery's Sloan Ratio for the quarter that ended in Mar. 2015 was 9.44%.
As of Mar. 2015, Doverddlery has a Sloan Ratio of 9.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Doverddlery Sloan Ratio % Historical Data
The historical data trend for Doverddlery'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 Doverddlery's Sloan Ratio %
For the Specialty Retail subindustry, Doverddlery'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.
Doverddlery's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Doverddlery's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Doverddlery's Sloan Ratio % falls into.
Doverddlery 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.
Doverddlery's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
Doverddlery's Net Income for the trailing twelve months (TTM) ended in Mar. 2015 was 0.192 (Jun. 2014 ) + 0.163 (Sep. 2014 ) + 1.056 (Dec. 2014 ) + -0.717 (Mar. 2015 ) = €0.69 Mil.
Doverddlery's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2015 was 0.068 (Jun. 2014 ) + -0.327 (Sep. 2014 ) + 3.579 (Dec. 2014 ) + -3.572 (Mar. 2015 ) = €-0.25 Mil.
Doverddlery's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2015 was -0.437 (Jun. 2014 ) + -0.717 (Sep. 2014 ) + -0.714 (Dec. 2014 ) + -1.457 (Mar. 2015 ) = €-3.33 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.
Doverddlery (FRA:D1R) 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. 2015, Doverddlery has a Sloan Ratio of 9.44%, indicating the company is in the safe zone and there is no funny business with accruals.
Doverddlery Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Doverddlery's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Dover Saddlery, Inc. is a Delaware Corporation. The Company was founded in 1975. It is a specialty retailer and the largest multi-channel marketer of premium, equestrian products in the U.S. The Company sells its products through a multi-channel strategy, including direct and retail. The Company offers a comprehensive selection of products required to own, ride, train and compete with a horse. The Company's equestrian product line includes a broad variety of separate items such as saddles, tack, specialized apparel, footwear, horse clothing, horse health and stable products. The Company has established itself as the largest multi-channel marketer of equestrian tack, specialized apparel, horse care and stable products in the U.S. and plans to continue its multi-channel retail strategy to capitalize on strong brand equity and utilize its customer database. This multi-channel strategy enables it to capture customer data, achieve operational synergies, provide a seamless and convenient shopping experience for its customers, cross market its products and reinforce its brand across channels. As of December 31, 2012, it operated seventeen stores under the Dover Saddlery brand and one store under the Smith Brothers brand. The Company is subject to numerous regulations governing the Internet and e-commerce, retailers generally, the importation, promotion and sale of merchandise, and the operation of retail stores and warehouse facilities.
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