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.
Walmart Chile's Sloan Ratio for the quarter that ended in Jun. 2016 was -2.61%.
As of Jun. 2016, Walmart Chile has a Sloan Ratio of -2.61%, indicating the company is in the safe zone and there is no funny business with accruals.
Walmart Chile Sloan Ratio % Historical Data
The historical data trend for Walmart Chile'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 Walmart Chile's Sloan Ratio %
For the Department Stores subindustry, Walmart Chile'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.
Walmart Chile's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Walmart Chile's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Walmart Chile's Sloan Ratio % falls into.
Walmart Chile 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.
Walmart Chile's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Walmart Chile's Net Income for the trailing twelve months (TTM) ended in Jun. 2016 was 182988.408 (Sep. 2015 ) + 69631.442 (Dec. 2015 ) + 42908.425 (Mar. 2016 ) + 76973.756 (Jun. 2016 ) = CLP372,502 Mil.
Walmart Chile's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 13067.637 (Sep. 2015 ) + 264723.523 (Dec. 2015 ) + 128689.04 (Mar. 2016 ) + 107217.895 (Jun. 2016 ) = CLP513,698 Mil.
Walmart Chile's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2016 was -28851.465 (Sep. 2015 ) + -5017.133 (Dec. 2015 ) + -5282.889 (Mar. 2016 ) + -9701.792 (Jun. 2016 ) = CLP-48,853 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.
Walmart Chile (XSGO:WMTCL) 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 Jun. 2016, Walmart Chile has a Sloan Ratio of -2.61%, indicating the company is in the safe zone and there is no funny business with accruals.
Walmart Chile Sloan Ratio % Related Terms
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Walmart Chile SA is engaged in the operation of supermarkets. The company operates supermarkets under the brands lider, express lider, acuenta, ekono, central mayorista, and lider.cl. The firm also provides financial services which include offering financing to its customers through MasterCard and presto credit cards, requesting advances in cash, consumer loans, access to various products and services such as insurance, payment of accounts, and Real estate services which includes construction of new premises of the company and management of commercial premises that are part of company's supermarkets.
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