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.
JM Smucker Co's Sloan Ratio for the quarter that ended in Oct. 2024 was 15.04%.
As of Oct. 2024, JM Smucker Co has a Sloan Ratio of 15.04%, indicating there is a warning stage of accrual build up.
JM Smucker Co Sloan Ratio % Historical Data
The historical data trend for JM Smucker 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 JM Smucker Co's Sloan Ratio %
For the Packaged Foods subindustry, JM Smucker 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.
JM Smucker Co's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, JM Smucker Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where JM Smucker Co's Sloan Ratio % falls into.
JM Smucker Co 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.
JM Smucker Co's Sloan Ratio for the fiscal year that ended in Apr. 2024 is calculated as
JM Smucker Co's Net Income for the trailing twelve months (TTM) ended in Oct. 2024 was 120.4 (Jan. 2024 ) + 245.1 (Apr. 2024 ) + 185 (Jul. 2024 ) + -24.5 (Oct. 2024 ) = $526 Mil.
JM Smucker Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2024 was 406.5 (Jan. 2024 ) + 428.1 (Apr. 2024 ) + 172.9 (Jul. 2024 ) + 404.2 (Oct. 2024 ) = $1,412 Mil.
JM Smucker Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2024 was -3567.5 (Jan. 2024 ) + -103.4 (Apr. 2024 ) + -172.4 (Jul. 2024 ) + -53.3 (Oct. 2024 ) = $-3,897 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.
JM Smucker Co (NYSE:SJM) 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 Oct. 2024, JM Smucker Co has a Sloan Ratio of 15.04%, indicating there is a warning stage of accrual build up.
JM Smucker Co Sloan Ratio % Related Terms
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J.M. Smucker is a packaged food company that primarily sells through the US retail channel (78% of fiscal 2024 revenue came through its retail pet foods, coffee, and frozen handheld/spreads segments), with the remaining share consisting of Hostess and international (primarily Canada). Retail coffee is its largest category (33% of sales) with brands Folgers and Dunkin'. Pet foods (22% of sales) holds leading brands like Milk-Bone and Meow Mix. Of its remaining, approximately 22% comes from consumer foods, primarily peanut butter and jelly, through brands Jif and Smucker's. The company acquired Hostess Brands in fiscal 2024 to boost its snack and convenience store presence.
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