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. 2024, Somnigroup International has a Sloan Ratio of -3.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Somnigroup International 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 Somnigroup International's Sloan Ratio %
For the Furnishings, Fixtures & Appliances subindustry, Somnigroup International'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.
Somnigroup International's Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, Somnigroup International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Somnigroup International's Sloan Ratio % falls into.
Somnigroup International 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.
Somnigroup International's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Somnigroup International's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 76.3 (Mar. 2024 ) + 106.1 (Jun. 2024 ) + 130 (Sep. 2024 ) + 71.9 (Dec. 2024 ) = $384 Mil.
Somnigroup International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 130.2 (Mar. 2024 ) + 150.6 (Jun. 2024 ) + 256.6 (Sep. 2024 ) + 129.1 (Dec. 2024 ) = $667 Mil.
Somnigroup International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -31.2 (Mar. 2024 ) + -28.5 (Jun. 2024 ) + -16.2 (Sep. 2024 ) + -20.8 (Dec. 2024 ) = $-97 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.
Somnigroup International (NYSE:SGI) 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. 2024, Somnigroup International has a Sloan Ratio of -3.10%, indicating the company is in the safe zone and there is no funny business with accruals.
Somnigroup International Sloan Ratio % Related Terms
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Somnigroup International Inc is a bedding company, dedicated to improving people's lives through better sleep. With superior capabilities in design, manufacturing, distribution and retail, It delivers breakthrough sleep solutions and serves the evolving needs of consumers in more than 100 countries worldwide through its fully-owned businesses, Tempur Sealy, Mattress Firm and Dreams. The company's portfolio includes the brand such as Tempur-Pedic, Sealy and Stearns & Foster, and its Multinational omnichannel platform enables the company to meet consumers wherever shop, offering a personal connection and innovation to provide a retail experience and tailored solutions.
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