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.
The Kroger Co's Sloan Ratio for the quarter that ended in Jan. 2025 was 0.00%.
As of Jan. 2025, The Kroger Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
The Kroger Co Sloan Ratio % Historical Data
The historical data trend for The Kroger Co'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 The Kroger Co's Sloan Ratio %
For the Grocery Stores subindustry, The Kroger Co'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.
The Kroger Co's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Kroger Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Kroger Co'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.
The Kroger Co's Sloan Ratio for the fiscal year that ended in Jan. 2025 is calculated as
The Kroger Co's Net Income for the trailing twelve months (TTM) ended in Jan. 2025 was 947 (Apr. 2024 ) + 466 (Jul. 2024 ) + 618 (Oct. 2024 ) + 634 (Jan. 2025 ) = $2,665 Mil.
The Kroger Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2025 was 2342 (Apr. 2024 ) + 1122 (Jul. 2024 ) + 926 (Oct. 2024 ) + 1404 (Jan. 2025 ) = $5,794 Mil.
The Kroger Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2025 was -1014 (Apr. 2024 ) + -891 (Jul. 2024 ) + -497 (Oct. 2024 ) + -826 (Jan. 2025 ) = $-3,228 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.
The Kroger Co (NYSE:KR) 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 Jan. 2025, The Kroger Co has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
The Kroger Co Sloan Ratio % Related Terms
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Kroger is one of the largest grocery retailers in the United States with more than 2,700 stores across a portfolio of over 20 supermarket banners. The company boasts an ingrained presence in US communities, citing that it is a top-two grocer in most of its major market areas. Over one fourth of Kroger's roughly $110 billion in nonperishable and fresh food sales (about 75% of revenue) stems from its private-label portfolio, of which the company manufactures about 30% of units via its own food production plants. The firm also operates fuel stations and pharmacies at 60% and 80% of its locations, respectively.
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