What is Furniture Brands International, Sloan Ratio %?
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.
* 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.
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Furniture Brands International, Sloan Ratio % Chart
Competitive Comparison of Furniture Brands International,'s Sloan Ratio %
For the Furnishings, Fixtures & Appliances subindustry, Furniture Brands International,'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.
Furniture Brands International,'s Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Furniture Brands International,'s Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Furniture Brands International,'s Sloan Ratio % falls into.
Furniture Brands International, 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.
Furniture Brands International,'s Net Income for the trailing twelve months (TTM) ended in Jun. 2013 was -13.953 (Sep. 2012 ) + -17.448 (Dec. 2012 ) + -16.369 (Mar. 2013 ) + -30.942 (Jun. 2013 ) = €-78.7 Mil.
Furniture Brands International,'s Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2013 was -0.109 (Sep. 2012 ) + -19.929 (Dec. 2012 ) + -8.787 (Mar. 2013 ) + 0.53 (Jun. 2013 ) = €-28.3 Mil.
Furniture Brands International,'s Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2013 was -1.096 (Sep. 2012 ) + 0.722 (Dec. 2012 ) + -1.404 (Mar. 2013 ) + -2.363 (Jun. 2013 ) = €-4.1 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.
Furniture Brands International, (FRA:FBN1) 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 Jun. 2013, Furniture Brands International, has a Sloan Ratio of -11.17%, indicating there is a warning stage of accrual build up.
Furniture Brands International, Sloan Ratio % Related Terms
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Furniture Brands International, (FRA:FBN1) Business Description
Furniture Brands International, Inc., is a Delaware corporation, which was organized in 1921 as a holding company. The Company is engaged in designing, manufacturing, sourcing and retailing of home furnishings. It markets products through a wide range of channels, including its own Thomasville retail stores and through interior designers, multi-line/independent retailers and mass merchant stores. Its portfolio includes Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and La Barge. Through these brands, the Company offers case goods, consisting of bedroom, dining room, and living room wood furniture; stationary upholstery products, consisting of sofas, loveseats, sectionals, and chairs; motion upholstered furniture, consisting of recliners and sleep sofas; occasional furniture, consisting of wood, metal and glass tables, accent pieces, home entertainment centers, and home office furniture; and decorative accessories and accent pieces. The Company's brands are featured in every price and product category in the residential furniture industry. Each of its brands targets specific customers in relation to style and price point. The raw materials used in manufacturing its products include lumber, veneers, plywood, fiberboard, particleboard, steel, paper, hardware, adhesives, finishing materials, glass, mirrored glass, fabrics, leathers, metals, stone, synthetics and upholstered filling material. The Company's products compete against domestic manufacturers, importers, and foreign manufacturers entering the United States market; as well as increased direct importing by some larger retailers. Its competitors include: Ashley Furniture Industries, Inc.; La-Z-Boy Incorporated; Ethan Allen Interiors Inc., and many other home furnishings retailers and manufacturers. The elements of competition include price, style, quality, service, brand and marketing.
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