Safeway (FRA:SWY) Sloan Ratio % : -11.27% (As of Sep. 2014)

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What is Safeway 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.

Safeway's Sloan Ratio for the quarter that ended in Sep. 2014 was -11.27%.

As of Sep. 2014, Safeway has a Sloan Ratio of -11.27%, indicating there is a warning stage of accrual build up.

Safeway Sloan Ratio % Historical Data

The historical data trend for Safeway'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.

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Safeway Sloan Ratio % Chart

Safeway Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Sloan Ratio %

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-18.43

-3.04

-3.27

-2.74

-15.37

Safeway Quarterly Data
	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14
Sloan Ratio %	Get a 7-Day Free Trial															-3.90	-15.22	-9.49	-9.42	-11.27

Competitive Comparison of Safeway's Sloan Ratio %

For the Grocery Stores subindustry, Safeway'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.

Safeway's Sloan Ratio % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Safeway's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Safeway's Sloan Ratio % falls into.

Safeway 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.

Safeway's Sloan Ratio for the fiscal year that ended in Dec. 2013 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2013 )	-	Cash Flow from Operations (A: Dec. 2013 )
	-	Cash Flow from Investing (A: Dec. 2013 ))	/	Total Assets (A: Dec. 2013 )
	=	(2560.475	-	908.193
	-	3584.008)	/	12570.235
	=	-15.37%

Safeway's Sloan Ratio for the quarter that ended in Sep. 2014 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Sep. 2014 )
	=	(2426.681	-	-83.668
	-	3629.644)	/	9933.421
	=	-11.27%

Safeway's Net Income for the trailing twelve months (TTM) ended in Sep. 2014 was 2419.512 (Dec. 2013 ) + -70.565 (Mar. 2014 ) + 70.362 (Jun. 2014 ) + 7.372 (Sep. 2014 ) = €2,427 Mil.
Safeway's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 682.404 (Dec. 2013 ) + -1436.312 (Mar. 2014 ) + 385.37 (Jun. 2014 ) + 284.87 (Sep. 2014 ) = €-84 Mil.
Safeway's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2014 was 3863.233 (Dec. 2013 ) + -91.966 (Mar. 2014 ) + -88.467 (Jun. 2014 ) + -53.156 (Sep. 2014 ) = €3,630 Mil.

Safeway (FRA:SWY) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Sep. 2014, Safeway has a Sloan Ratio of -11.27%, indicating there is a warning stage of accrual build up.

Safeway Sloan Ratio % Related Terms

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Safeway (FRA:SWY) Business Description

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GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Safeway Inc (FRA:SWY) » Definitions » Sloan Ratio %

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Address

Website

http://www.safeway.com

Safeway Inc was incorporated in the state of Delaware in July 1986 as SSI Holdings Corporation and, thereafter, its name was changed to Safeway Stores, Incorporated. In February 1990, the Company changed its name to Safeway Inc. The Company is a food and drug retailers in the United States, with 1,335 stores at year-end 2013. The Company's U.S. retail operations are located principally in California, Hawaii, Oregon, Washington, Alaska, Colorado, Arizona, Texas and the Mid-Atlantic region. The Company also has a network of distribution, manufacturing and food-processing facilities. The Company retail business operates into seven geographic retail operating segments; Denver, Eastern, Northern California, Phoenix, Northwest, Texas and Southern California. In all geographical retail operating segments, it operates one store format, where each store offers the same general mix of products with similar pricing to similar categories of customers. The Company does not operate supercenters, warehouse formats, combination clothing/grocery stores or discount stores. It owns and operates GroceryWorks.com Operating Company, LLC ("GroceryWorks"), an online grocery channel doing business under the names Safeway.com and Vons.com. Safeway's stores provide grocery items tailored to local preferences. Its stores offer a selection of food and general merchandise and feature a variety of specialty departments such as bakery, delicatessen, floral and pharmacy. In addition, its stores offer Starbucks coffee shops and adjacent fuel centers. The Company also owns more than 300 other trademarks registered and/or pending in the United States Patent and Trademark Office and other jurisdictions, including trademarks for its product and services such as Safeway, Safeway SELECT, Rancher's Reserve, O Organics, Lucerne, Primo Taglio, Eating Right, mom to mom, waterfront BISTRO, Bright Green, Pantry Essentials, Open Nature, Refreshe, Snack Artist, Signature CafÃ©, Priority, just for U, My Simple Nutrition, Ingredients for Life, and other trademarks such as Pak'N Save Foods, Vons, Pavilions, Randalls, Tom Thumb, and Carrs Quality Centers. Blackhawk, a subsidiary of Safeway, provides third-party gift cards, prepaid cards, telecom cards and sports and entertainment cards to a group of top North American retailers for sale to retail customers. The competitive factors that affect the Company's business are location, quality, price, condition of assets, marketing and promotional strategies, service and consumer loyalty to other brands and stores. It faces intense competition from traditional grocery retailers, non-traditional competitors such as supercenters and club stores, as well as from specialty supermarkets, drug stores, dollar stores, convenience stores and restaurants. The Company's compliance with the federal, state, local and foreign laws and regulations have been adopted regulating the discharge of materials into the environment or otherwise related to the p

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