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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.
Fairway Group Holdings's Sloan Ratio for the quarter that ended in Dec. 2015 was -12.34%.
As of Dec. 2015, Fairway Group Holdings has a Sloan Ratio of -12.34%, indicating there is a warning stage of accrual build up.
Fairway Group Holdings (FRA:FGWA) 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 Dec. 2015, Fairway Group Holdings has a Sloan Ratio of -12.34%, indicating there is a warning stage of accrual build up.
Fairway Group Holdings Sloan Ratio % Related Terms
Fairway Group Holdings Sloan Ratio % Historical Data
* 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.
For the Grocery Stores subindustry, Fairway Group Holdings'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.
Fairway Group Holdings Sloan Ratio % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Fairway Group Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Fairway Group Holdings's Sloan Ratio % falls into.
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.
Fairway Group Holdings's Sloan Ratio for the fiscal year that ended in Mar. 2015 is calculated as
Fairway Group Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was -7.896 (Mar. 2015 ) + -12.415 (Jun. 2015 ) + -10.708 (Sep. 2015 ) + -8.945 (Dec. 2015 ) = €-40.0 Mil.
Fairway Group Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 1.105 (Mar. 2015 ) + -0.676 (Jun. 2015 ) + 1.361 (Sep. 2015 ) + 8.199 (Dec. 2015 ) = €10.0 Mil.
Fairway Group Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was -2.962 (Mar. 2015 ) + -2.422 (Jun. 2015 ) + -2.808 (Sep. 2015 ) + -2.559 (Dec. 2015 ) = €-10.8 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.
Fairway Group Holdings (FRA:FGWA) has a Sloan Ratio % of -12.34% as of Dec. 2015. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Fairway Group Holdings and its competitors.
Is Fairway Group Holdings' Sloan Ratio % too high?
Fairway Group Holdings' current Sloan Ratio % is -12.34%.
How does Fairway Group Holdings' Sloan Ratio % compare to IFMK?
Fairway Group Holdings' Sloan Ratio % of -12.34% can be compared against companies in the Retail - Defensive industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Retail - Defensive company?
A good Sloan Ratio % depends on the Retail - Defensive industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Fairway Group Holdings and its competitors. Fairway Group Holdings's current Sloan Ratio % is -12.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fairway Group Holdings stock overvalued right now?
Fairway Group Holdings (FRA:FGWA) has a current Sloan Ratio % of -12.34%. The current Sloan Ratio % is -12.34%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Fairway Group Holdings (FRA:FGWA), the current Sloan Ratio % is -12.34% as of Dec. 2015. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Fairway Group Holdings Corp along with its subsidiaries operates in the retail food industry. The company sells fresh, natural and organic products, prepared foods and hard to find specialty and gourmet offerings, along with a full assortment of conventional groceries. Its perishable product categories, which include producing, natural and organic, deli, specialty, cheese, butcher, seafood, bakery, coffee and kosher foods. The non-perishable product categories consist of conventional groceries as well as specialty foods.
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