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 Alkaline Water Co's Sloan Ratio for the quarter that ended in Jun. 2023 was 0.00%.
Warning Sign:
When sloan ratio (-86.14)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Jun. 2023, The Alkaline Water 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 Alkaline Water Co Sloan Ratio % Historical Data
The historical data trend for The Alkaline Water 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 Alkaline Water Co's Sloan Ratio %
For the Beverages - Non-Alcoholic subindustry, The Alkaline Water 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 Alkaline Water Co's Sloan Ratio % Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, The Alkaline Water Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where The Alkaline Water Co's Sloan Ratio % falls into.
The Alkaline Water 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.
The Alkaline Water Co's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
The Alkaline Water Co's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was -8.481 (Sep. 2022 ) + -3.763 (Dec. 2022 ) + -7.031 (Mar. 2023 ) + -2.622 (Jun. 2023 ) = €-21.90 Mil.
The Alkaline Water Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was -7.026 (Sep. 2022 ) + -0.443 (Dec. 2022 ) + -0.475 (Mar. 2023 ) + -0.378 (Jun. 2023 ) = €-8.32 Mil.
The Alkaline Water Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -0.382 (Sep. 2022 ) + 0.42 (Dec. 2022 ) + -0.614 (Mar. 2023 ) + 0 (Jun. 2023 ) = €-0.58 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 Alkaline Water Co (STU:AWJ) 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 Jun. 2023, The Alkaline Water 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 Alkaline Water Co Sloan Ratio % Related Terms
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The Alkaline Water Co (STU:AWJ) Business Description
Alkaline Water Co Inc is engaged in the business of distributing and marketing bottled alkaline water for retail consumers of different sizes. The firm sells its product in 500ml, 700ml, 1-liter, 1.5-liter 3-liter, and 1-gallon sizes. Its only operating geographical segment being the United States of America. The company sells its product to convenience stores, natural food products stores, large ethnic markets, and national retailers.
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