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.
Lucas Bols NV's Sloan Ratio for the quarter that ended in Sep. 2023 was -7.50%.
As of Sep. 2023, Lucas Bols NV has a Sloan Ratio of -7.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Lucas Bols NV Sloan Ratio % Historical Data
The historical data trend for Lucas Bols NV'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 Lucas Bols NV's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Lucas Bols NV'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.
Lucas Bols NV's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Lucas Bols NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lucas Bols NV's Sloan Ratio % falls into.
Lucas Bols NV 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.
Lucas Bols NV's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Lucas Bols NV's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -24.106 (Mar. 2023 ) + 7.015 (Sep. 2023 ) = €-17.1 Mil.
Lucas Bols NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 4.198 (Mar. 2023 ) + 8.047 (Sep. 2023 ) = €12.2 Mil.
Lucas Bols NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 3.846 (Mar. 2023 ) + -5.945 (Sep. 2023 ) = €-2.1 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.
Lucas Bols NV (LTS:0R6E) 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, Lucas Bols NV has a Sloan Ratio of -7.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Lucas Bols NV Sloan Ratio % Related Terms
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Lucas Bols NV is mainly involved in managing the product development, bottling, distribution, sales and marketing of the brands and a large group of Dutch genevers and liqueurs. It has Global brands and Regional brands segments. The company derives the majority of its revenues from the Global Brands segment which consist of the Bols Liqueurs range, Italian Liqueurs (Galliano and Vaccari), the white spirits portfolio (Bols Vodka, Bols Genever and Damrak Gin) and Passoa. The Regional Brands segment represent the brands which in general are sold on one continent and predominantly have an off-premise character. Geographically, the group has a business presence in Western Europe, Asia Pacific, North America and others.
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