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.
Endeavour Group's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.22%.
As of Dec. 2023, Endeavour Group has a Sloan Ratio of 0.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Endeavour Group Sloan Ratio % Historical Data
The historical data trend for Endeavour Group'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 Endeavour Group's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Endeavour Group'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.
Endeavour Group's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Endeavour Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Endeavour Group's Sloan Ratio % falls into.
Endeavour Group 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.
Endeavour Group's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Endeavour Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 165 (Jun. 2023 ) + 351 (Dec. 2023 ) = A$516 Mil.
Endeavour Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 124 (Jun. 2023 ) + 914 (Dec. 2023 ) = A$1,038 Mil.
Endeavour Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -330 (Jun. 2023 ) + -219 (Dec. 2023 ) = A$-549 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.
Endeavour Group (ASX:EDV) 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, Endeavour Group has a Sloan Ratio of 0.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Endeavour Group Sloan Ratio % Related Terms
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Endeavour Group Ltd is an investment in wide-moat-rated Endeavour Group provides investors with exposure to one of the well-entrenched dividend-paying businesses in the Australian retail landscape. Following decades of enduring organic growth through store rollouts, Endeavour's off-premises retail segment—with more than 1,600 retail outlets mainly across its Dan Murphy's and BWS brands—accounts for approximately half of all off-premises retail liquor sales within Australia. Endeavour's immense scale in the off-premises retail segment is unrivaled within Australia. Indeed, Endeavour's sales are almost three times larger than its nearest retail competitor, Coles.
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