What is Koninklijke Ahold Delhaize NV Sloan Ratio %?
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. 2023, Koninklijke Ahold Delhaize NV has a Sloan Ratio of -4.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Koninklijke Ahold Delhaize NV 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 Koninklijke Ahold Delhaize NV's Sloan Ratio %
For the Grocery Stores subindustry, Koninklijke Ahold Delhaize NV'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.
Koninklijke Ahold Delhaize NV's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Koninklijke Ahold Delhaize NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Koninklijke Ahold Delhaize NV's Sloan Ratio % falls into.
Koninklijke Ahold Delhaize NV 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.
Koninklijke Ahold Delhaize NV's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 561 (Mar. 2023 ) + 468 (Jun. 2023 ) + 394 (Sep. 2023 ) + 451 (Dec. 2023 ) = €1,874 Mil.
Koninklijke Ahold Delhaize NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 940 (Mar. 2023 ) + 1853 (Jun. 2023 ) + 1443 (Sep. 2023 ) + 2230 (Dec. 2023 ) = €6,466 Mil.
Koninklijke Ahold Delhaize NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -435 (Mar. 2023 ) + -477 (Jun. 2023 ) + -451 (Sep. 2023 ) + -846 (Dec. 2023 ) = €-2,209 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.
Koninklijke Ahold Delhaize NV (XAMS:AD) 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. 2023, Koninklijke Ahold Delhaize NV has a Sloan Ratio of -4.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Koninklijke Ahold Delhaize NV Sloan Ratio % Related Terms
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Koninklijke Ahold Delhaize NV (XAMS:AD) Business Description
Ahold Delhaize is the product of the July 2016 merger between Netherlands-based Ahold and Belgium's Delhaize, forming the fourth-largest grocer in the U.S. and a top player in many parts of Europe. The U.S. is the largest market, accounting for over 60% of group sales, with Ahold Delhaize the leading grocer on the Eastern Seaboard. The U.S. store network stretches from Maine to Georgia and includes such banners as Stop & Shop, Giant Carlisle, Giant Landover, Food Lion, Hannaford, and Peapod. The Netherlands, Belgium, and Central and Southeastern Europe, including the Czech Republic, Greece, Romania, and Serbia, account for slightly less than 40% of sales. Ahold Delhaize holds the number-one and number-two positions in these countries.
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