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.
Urban Outfitters's Sloan Ratio for the quarter that ended in Jan. 2024 was 3.69%.
As of Jan. 2024, Urban Outfitters has a Sloan Ratio of 3.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Urban Outfitters Sloan Ratio % Historical Data
The historical data trend for Urban Outfitters'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 Urban Outfitters's Sloan Ratio %
For the Apparel Retail subindustry, Urban Outfitters'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.
Urban Outfitters's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Urban Outfitters's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Urban Outfitters's Sloan Ratio % falls into.
Urban Outfitters 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.
Urban Outfitters's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Urban Outfitters's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 9340.625 (Apr. 2023 ) + 26720.418 (Jul. 2023 ) + 29054.9 (Oct. 2023 ) + 38604.295 (Jan. 2024 ) = ARS103,720 Mil.
Urban Outfitters's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 6415.546 (Apr. 2023 ) + 44914.801 (Jul. 2023 ) + 24147.2 (Oct. 2023 ) + 185274.1 (Jan. 2024 ) = ARS260,752 Mil.
Urban Outfitters's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -10177.474 (Apr. 2023 ) + -30930.554 (Jul. 2023 ) + -29979.6 (Oct. 2023 ) + -208539.673 (Jan. 2024 ) = ARS-279,627 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.
Urban Outfitters (BUE:URBN) 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, Urban Outfitters has a Sloan Ratio of 3.69%, indicating the company is in the safe zone and there is no funny business with accruals.
Urban Outfitters Sloan Ratio % Related Terms
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Founded in 1970, Philadelphia-based Urban Outfitters is an apparel and home goods retailer that operates about 700 stores and e-commerce in North America (87% of fiscal 2023 sales) and other regions. Its retail nameplates are Urban Outfitters, Free People, FP Movement, and Anthropologie. Retail accounted for 92% of fiscal 2023 revenue, but the firm also sells products through a wholesale operation, owns some restaurants, and operates a clothing rental and resale business called Nuuly. Urban Outfitters primarily markets to young adults and offers products in categories such as apparel (63% of fiscal 2023 sales), home goods (19% of sales), accessories (13% of sales), and more.
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