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.
Sendas Distribuidora's Sloan Ratio for the quarter that ended in Mar. 2024 was -6.80%.
As of Mar. 2024, Sendas Distribuidora has a Sloan Ratio of -6.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Sendas Distribuidora Sloan Ratio % Historical Data
The historical data trend for Sendas Distribuidora'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 Sendas Distribuidora's Sloan Ratio %
For the Grocery Stores subindustry, Sendas Distribuidora'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.
Sendas Distribuidora's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Sendas Distribuidora's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sendas Distribuidora's Sloan Ratio % falls into.
Sendas Distribuidora 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.
Sendas Distribuidora's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sendas Distribuidora's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 32.14 (Jun. 2023 ) + 37.459 (Sep. 2023 ) + 60.615 (Dec. 2023 ) + 12.049 (Mar. 2024 ) = $142 Mil.
Sendas Distribuidora's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 537.734 (Jun. 2023 ) + 154.292 (Sep. 2023 ) + 523.899 (Dec. 2023 ) + 91.771 (Mar. 2024 ) = $1,308 Mil.
Sendas Distribuidora's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -171.416 (Jun. 2023 ) + -214.631 (Sep. 2023 ) + -128.373 (Dec. 2023 ) + -81.329 (Mar. 2024 ) = $-596 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.
Sendas Distribuidora (NYSE:ASAI) 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 Mar. 2024, Sendas Distribuidora has a Sloan Ratio of -6.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Sendas Distribuidora Sloan Ratio % Related Terms
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Sendas Distribuidora (Sendas Distribuidora) Business Description
Sendas Distribuidora SA is involved in the consumer goods business. Its cash and carry operations involve sales of more than 8,000 items of grocery, food, perishable, beverage, wrapping, hygiene, and cleaning products, among others. Its customers include prepared food retailers (including restaurants, pizzerias, and snack bars), end-users (including schools, small businesses, religious institutions, hospitals, and hotels), conventional retailers (such as grocery stores and neighborhood supermarkets), and individuals. Its stores are located throughout 23 Brazilian states.
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