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.
Kellanova Co's Sloan Ratio for the quarter that ended in Sep. 2024 was 0.96%.
As of Sep. 2024, Kellanova Co has a Sloan Ratio of 0.96%, indicating the company is in the safe zone and there is no funny business with accruals.
Kellanova Co Sloan Ratio % Historical Data
The historical data trend for Kellanova 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 Kellanova Co's Sloan Ratio %
For the Packaged Foods subindustry, Kellanova 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.
Kellanova Co's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Kellanova Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kellanova Co's Sloan Ratio % falls into.
Kellanova 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.
Kellanova Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Kellanova Co's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 24.759 (Dec. 2023 ) + 245.64 (Mar. 2024 ) + 319.576 (Jun. 2024 ) + 330.667 (Sep. 2024 ) = €921 Mil.
Kellanova Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 224.665 (Dec. 2023 ) + 334.88 (Mar. 2024 ) + 349.304 (Jun. 2024 ) + 498.253 (Sep. 2024 ) = €1,407 Mil.
Kellanova Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -82.53 (Dec. 2023 ) + -306.36 (Mar. 2024 ) + -112.409 (Jun. 2024 ) + -121.635 (Sep. 2024 ) = €-623 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.
Kellanova Co (WBO:KELL) 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 Sep. 2024, Kellanova Co has a Sloan Ratio of 0.96%, indicating the company is in the safe zone and there is no funny business with accruals.
Kellanova Co Sloan Ratio % Related Terms
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Following its split from the North American cereal business in October 2023, Kellanova (previously the global snacking arm of Kellogg) has operated as a leading global manufacturer and marketer of salty snacks, snack bars, frozen breakfast fare, meat alternatives, and other packaged foods. Its offerings are manufactured in around 20 countries and marketed in more than 180 countries. Its product mix includes well-known brands such as Pringles, Cheez-It, Rice Krispies Treats, Pop-Tarts, Eggo, Nutri-Grain, and Morningstar Farms. Sales beyond its home turf account for about half of Kellanova's consolidated sales base. Mars is slated to acquire the newly independent business in a nearly $36 billion deal in the first half of calendar 2025.
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