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.
As of Dec. 2022, John Lewis of Hungerford has a Sloan Ratio of -6.22%, indicating the company is in the safe zone and there is no funny business with accruals.
John Lewis of Hungerford 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.
Competitive Comparison of John Lewis of Hungerford's Sloan Ratio %
For the Furnishings, Fixtures & Appliances subindustry, John Lewis of Hungerford'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.
John Lewis of Hungerford's Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, John Lewis of Hungerford's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where John Lewis of Hungerford's Sloan Ratio % falls into.
John Lewis of Hungerford 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.
John Lewis of Hungerford's Sloan Ratio for the fiscal year that ended in Jun. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
John Lewis of Hungerford's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was 0.095 (Jun. 2022 ) + -0.174 (Dec. 2022 ) = £-0.08 Mil.
John Lewis of Hungerford's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2022 was 0.992 (Jun. 2022 ) + -0.436 (Dec. 2022 ) = £0.56 Mil.
John Lewis of Hungerford's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2022 was -0.101 (Jun. 2022 ) + -0.073 (Dec. 2022 ) = £-0.17 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.
John Lewis of Hungerford (LSE:JLH) 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. 2022, John Lewis of Hungerford has a Sloan Ratio of -6.22%, indicating the company is in the safe zone and there is no funny business with accruals.
John Lewis of Hungerford Sloan Ratio % Related Terms
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John Lewis of Hungerford (LSE:JLH) Business Description
John Lewis of Hungerford PLC is a UK-based company that designs, manufactures, retails, and installs kitchens, bedrooms, freestanding furniture, and architectural components for its customers through its showrooms across the United Kingdom. It also operates an online business under the name of Just Doors for replacement kitchen cabinet doors. The company offers furniture such as Dressers, Tables, Chairs, and others, as well as painted kitchen collections and fitted bedroom collections. It operates its business in single-segment, being Manufacture, supplying, and installation of kitchen units, bedrooms, and furniture. The group's revenue is derived from the UK.
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