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.
RFG Holdings's Sloan Ratio for the quarter that ended in Sep. 2023 was -0.73%.
As of Sep. 2023, RFG Holdings has a Sloan Ratio of -0.73%, indicating the company is in the safe zone and there is no funny business with accruals.
RFG Holdings Sloan Ratio % Historical Data
The historical data trend for RFG Holdings'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 RFG Holdings's Sloan Ratio %
For the Packaged Foods subindustry, RFG 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.
RFG Holdings's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, RFG Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where RFG Holdings's Sloan Ratio % falls into.
RFG Holdings 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.
RFG Holdings's Sloan Ratio for the fiscal year that ended in Sep. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
RFG Holdings's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was 217.295 (Mar. 2023 ) + 259.3 (Sep. 2023 ) = R477 Mil.
RFG Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -86.407 (Mar. 2023 ) + 890.979 (Sep. 2023 ) = R805 Mil.
RFG Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -142.766 (Mar. 2023 ) + -144.911 (Sep. 2023 ) = R-288 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.
RFG Holdings (JSE:RFG) 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 Sep. 2023, RFG Holdings has a Sloan Ratio of -0.73%, indicating the company is in the safe zone and there is no funny business with accruals.
RFG Holdings Sloan Ratio % Related Terms
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RFG Holdings Ltd is a South Africa based company engaged in supplying fresh, frozen, and convenience meal solutions. The product range offered by the company includes canned fruit, jam, vegetable and meat products, bottled salads, fruit juices and purees, fresh ready meals, pies, pastries, bakery, and dairy products. The business operates under two divisions namely, Long life foods and Fresh products. Long life foods division, which includes canned fruits and vegetables, jams, bottled salads, fruit juice, fruit purees, baby food, and canned meat, contributes majorly to the group's revenue. The company's reportable segments include, Regional which is the key revenue generating segment, and International.
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