D.E. Master Blenders 1753 N.V. (XAMS:DE) Sloan Ratio % : -19.73% (As of Jun. 2012)

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What is D.E. Master Blenders 1753 N.V. 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.

D.E. Master Blenders 1753 N.V.'s Sloan Ratio for the quarter that ended in Jun. 2012 was -19.73%.

As of Jun. 2012, D.E. Master Blenders 1753 N.V. has a Sloan Ratio of -19.73%, indicating there is a warning stage of accrual build up.

D.E. Master Blenders 1753 N.V. Sloan Ratio % Historical Data

The historical data trend for D.E. Master Blenders 1753 N.V.'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.

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D.E. Master Blenders 1753 N.V. Sloan Ratio % Chart

D.E. Master Blenders 1753 N.V. Annual Data

Trend

Jun11

Jun12

Sloan Ratio %

-1.95

-19.73

D.E. Master Blenders 1753 N.V. Semi-Annual Data
	Jun11	Jun12
Sloan Ratio %	-	-19.73

Competitive Comparison of D.E. Master Blenders 1753 N.V.'s Sloan Ratio %

For the Packaged Foods subindustry, D.E. Master Blenders 1753 N.V.'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.

D.E. Master Blenders 1753 N.V.'s Sloan Ratio % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, D.E. Master Blenders 1753 N.V.'s Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where D.E. Master Blenders 1753 N.V.'s Sloan Ratio % falls into.

D.E. Master Blenders 1753 N.V. 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.

D.E. Master Blenders 1753 N.V.'s Sloan Ratio for the fiscal year that ended in Jun. 2012 is calculated as

Sloan Ratio	=	(Net Income (A: Jun. 2012 )	-	Cash Flow from Operations (A: Jun. 2012 )
	-	Cash Flow from Investing (A: Jun. 2012 ))	/	Total Assets (A: Jun. 2012 )
	=	(132.191	-	102.453
	-	456.74)	/	2163.988
	=	-19.73%

D.E. Master Blenders 1753 N.V.'s Sloan Ratio for the quarter that ended in Jun. 2012 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Jun. 2012 )
	=	(	-
	-	)	/
	=	%

D.E. Master Blenders 1753 N.V. does not have enough years/quarters to calculate the Net Income, Cash Flow from Investing, and Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2012.

D.E. Master Blenders 1753 N.V. (XAMS:DE) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2012, D.E. Master Blenders 1753 N.V. has a Sloan Ratio of -19.73%, indicating there is a warning stage of accrual build up.

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D.E. Master Blenders 1753 N.V. (XAMS:DE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » D.E. Master Blenders 1753 N.V. (XAMS:DE) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.demasterblenders1753.com

D E Master Blenders 1753 NV was incorporated on February 27, 2012 as a private company with limited liability. On April 4, 2012, it changed its name to D.E MASTER BLENDERS 1753 B.V. and moved its corporate seat to Joure (SkasterlÃ¢n), the Netherlands. The Company is a pure-play coffee and tea company that offers high-quality, coffee and tea products that are known in retail and out of home markets across Europe, Brazil, Australia and Thailand. It has a portfolio of coffee and tea brands that address the needs of both its retail and out of home customers in its markets. The Company's segments are Retail-Western Europe, Retail-Rest of World and Out of Home. In Retail-Western Europe and Retail-Rest of World segments, its principal products are multi-serve coffee, single-serve coffee pads and capsules, instant coffee and tea. It sells these products predominantly to supermarkets, hypermarkets and through international buying groups. In its Out of Home segment, it offers hot beverage products but focus on its liquid roast products and related coffee machines. Its products and the related machines in the Out of Home segment are sold either directly to businesses, hotels, hospitals and restaurants or to foodservice distributors for distribution to the customer. Douwe Egberts is the Company's established brand in the multi-serve category and coffee brand in the Netherlands and Belgium and also has solid market positions in the United Kingdom and Hungary. In addition to Douwe Egberts, its multi-serve coffee is sold under the following brands: L'OR and Maison du CafÃ© in France, Marcilla in Spain,Merrild in Denmark, Harris in Australia, Kanis & Gunnink in the Netherlands, Jacqmotte in Belgium, Prima in Poland, and PilÃ£o, Caboclo, Damasco and Moka in Brazil. Its single-serve coffee is sold under the brand name Senseo which is generally co-branded, such as Douwe Egberts Senseo and L'OR Senseo, in the Netherlands, Belgium, France, Germany, and Spain and selected other countries. In April 2010, it launched the L'OR EspressO capsules brand in France, and L'OR EspressO has subsequently been successfully launched in the Netherlands and Belgium. In May 2011, it successfully launched its capsules brand in Spain as L'aRÃ´me EspressO. The Company's instant coffee is sold under the Moccona brand in Australia and Thailand, under the Douwe Egberts brand in the United Kingdom and under local brands in certain of its markets. Its tea is sold under the brand names Pickwick in the Netherlands, Belgium, the Czech Republic, Hungary and Denmark and Hornimans in Spain. The Out of Home segment operates under the Cafitesse umbrella brand, which is principally co-branded Douwe Egberts Cafitesse, for its liquid roast coffee products and machines and under its Piazza D'Oro brand for premium espresso products and machines. The Company competes with other large international and national coffee and tea companies as well as smaller regional and specialty coffee and te