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 Mar. 2014, Davi Luxury Brand Group has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Davi Luxury Brand Group 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 Davi Luxury Brand Group's Sloan Ratio %
For the Household & Personal Products subindustry, Davi Luxury Brand 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.
Davi Luxury Brand Group's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Davi Luxury Brand Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Davi Luxury Brand Group's Sloan Ratio % falls into.
Davi Luxury Brand 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.
Davi Luxury Brand Group's Sloan Ratio for the fiscal year that ended in Sep. 2013 is calculated as
Davi Luxury Brand Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2014 was -0.032 (Jun. 2013 ) + -0.33 (Sep. 2013 ) + -0.184 (Dec. 2013 ) + -0.117 (Mar. 2014 ) = $-0.66 Mil.
Davi Luxury Brand Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2014 was -0.025 (Jun. 2013 ) + -0.08 (Sep. 2013 ) + -0.112 (Dec. 2013 ) + -0.125 (Mar. 2014 ) = $-0.34 Mil.
Davi Luxury Brand Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2014 was -0.017 (Jun. 2013 ) + -0.037 (Sep. 2013 ) + -0.013 (Dec. 2013 ) + 0 (Mar. 2014 ) = $-0.07 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.
Davi Luxury Brand Group (OTCPK:MDAV) 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 Mar. 2014, Davi Luxury Brand Group has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Davi Luxury Brand Group Sloan Ratio % Related Terms
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Davi Luxury Brand Group (Davi Luxury Brand Group) Business Description
Davi Luxury Brand Group Inc is a skin care (cosmetics) company that offers a grape-vineyard, botanical based skin care products marketed under the Company's 'DAVI', 'DAVI NAPA' and 'DAVI SKIN' brand names. All of its products are, or will be sold 'over the counter.' Through licensing and other arrangements, its products are available in high-end retail stores in Asia, luxury hotels worldwide, and in-flight and duty-free shops of a global luxury airline. The Company's products compete against similar, branded products of many large and small companies.
Davi Luxury Brand Group (Davi Luxury Brand Group) Headlines
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