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.
Abercrombie & Fitch Co's Sloan Ratio for the quarter that ended in Jan. 2024 was -5.65%.
As of Jan. 2024, Abercrombie & Fitch Co has a Sloan Ratio of -5.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Abercrombie & Fitch Co Sloan Ratio % Historical Data
The historical data trend for Abercrombie & Fitch 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 Abercrombie & Fitch Co's Sloan Ratio %
For the Apparel Retail subindustry, Abercrombie & Fitch 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.
Abercrombie & Fitch Co's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Abercrombie & Fitch Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Abercrombie & Fitch Co's Sloan Ratio % falls into.
Abercrombie & Fitch 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.
Abercrombie & Fitch Co's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Abercrombie & Fitch Co's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 16.571 (Apr. 2023 ) + 56.894 (Jul. 2023 ) + 96.211 (Oct. 2023 ) + 158.447 (Jan. 2024 ) = $328 Mil.
Abercrombie & Fitch Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -0.56 (Apr. 2023 ) + 216.888 (Jul. 2023 ) + 133.814 (Oct. 2023 ) + 303.28 (Jan. 2024 ) = $653 Mil.
Abercrombie & Fitch Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -46.391 (Apr. 2023 ) + -43.389 (Jul. 2023 ) + -38.206 (Oct. 2023 ) + -29.196 (Jan. 2024 ) = $-157 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.
Abercrombie & Fitch Co (NYSE:ANF) 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 Jan. 2024, Abercrombie & Fitch Co has a Sloan Ratio of -5.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Abercrombie & Fitch Co Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Abercrombie & Fitch Co's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Abercrombie & Fitch Co (Abercrombie & Fitch Co) Business Description
Abercrombie & Fitch Co is a specialty retailer that sells casual clothing, personal-care products, and accessories for men, women, and children. It sells direct to consumer through its stores and websites, which include the Abercrombie & Fitch, Abercrombie kids, and Hollister brands. Most stores are in the United States, but the company does have many stores in Canada, Europe, and Asia. All stores are leased. Abercrombie ships to well over 100 countries via its websites. The company sources its merchandise from dozens of vendors that are primarily located in Asia and Central America. Abercrombie has two distribution centers in Ohio to support its North American operations. It uses third-party distributors for sales in Europe and Asia.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ANF has been successfully added to your 