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.
Milkiland Foods PCL's Sloan Ratio for the quarter that ended in Mar. 2021 was -31.25%.
As of Mar. 2021, Milkiland Foods PCL has a Sloan Ratio of -31.25%, indicating there is a warning stage of accrual build up.
Milkiland Foods PCL Sloan Ratio % Historical Data
The historical data trend for Milkiland Foods PCL'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 Milkiland Foods PCL's Sloan Ratio %
For the Packaged Foods subindustry, Milkiland Foods PCL'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.
Milkiland Foods PCL's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Milkiland Foods PCL's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Milkiland Foods PCL's Sloan Ratio % falls into.
Milkiland Foods PCL 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.
Milkiland Foods PCL's Sloan Ratio for the fiscal year that ended in Dec. 2019 is calculated as
Milkiland Foods PCL's Net Income for the trailing twelve months (TTM) ended in Mar. 2021 was -32.201 (Mar. 2020 ) + -65.152 (Jun. 2020 ) + -27.138 (Sep. 2020 ) + -51.583 (Mar. 2021 ) = zł-176.1 Mil.
Milkiland Foods PCL's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2021 was -3.327 (Mar. 2020 ) + -2.511 (Jun. 2020 ) + 1.577 (Sep. 2020 ) + -0.642 (Mar. 2021 ) = zł-4.9 Mil.
Milkiland Foods PCL's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2021 was -1.699 (Mar. 2020 ) + 1.107 (Jun. 2020 ) + 0.086 (Sep. 2020 ) + -0.223 (Mar. 2021 ) = zł-0.7 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.
Milkiland Foods PCL (WAR:MLK) 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. 2021, Milkiland Foods PCL has a Sloan Ratio of -31.25%, indicating there is a warning stage of accrual build up.
Milkiland Foods PCL Sloan Ratio % Related Terms
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Milkiland Foods PCL is a Netherland-based company engaged in the production and distribution of dairy products. It is organized into three segments which include Whole Milk products, which involves the sale of milk and milk products; Cheese and Butter products, which comprises of hard, soft and processed cheese, as well as packaged butter; and Ingredients, which includes products such as skimmed milk powder, and full cream powder. Geographically, it operates in Russia, Ukraine, Poland, and the Netherlands. It generates the majority of its revenues from the Whole Milk products in Russia.
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