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.
Grafton Group's Sloan Ratio for the quarter that ended in Dec. 2023 was 4.69%.
As of Dec. 2023, Grafton Group has a Sloan Ratio of 4.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Grafton Group Sloan Ratio % Historical Data
The historical data trend for Grafton Group'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 Grafton Group's Sloan Ratio %
For the Industrial Distribution subindustry, Grafton Group'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.
Grafton Group's Sloan Ratio % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Grafton Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Grafton Group's Sloan Ratio % falls into.
Grafton Group 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.
Grafton Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Grafton Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 94.424 (Jun. 2023 ) + 93.594 (Dec. 2023 ) = $188 Mil.
Grafton Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 202.922 (Jun. 2023 ) + 141.903 (Dec. 2023 ) = $345 Mil.
Grafton Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -21.111 (Jun. 2023 ) + -302.172 (Dec. 2023 ) = $-323 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.
Grafton Group (OTCPK:GROUF) 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. 2023, Grafton Group has a Sloan Ratio of 4.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Grafton Group Sloan Ratio % Related Terms
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Grafton Group (Grafton Group) Business Description
Grafton Group PLC is a distributor of building materials that operates in three segments; The Distribution segment is into the distribution of building and plumbing materials to professional trades people engaged in residential repair, maintenance, and improvement projects and also in residential and other new build construction, The Retailing segment operates DIY and home improvement business from a network of 35 stores that supply mainly retail customers with wide products for DIY and for the home and garden, and The Manufacturing segment is into the manufacture of dry mortar in Great Britain. The company also operates in residential and other new build construction. Geographically, the company generates over half of its revenue from the United Kingdom.
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