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.
Buffalo Wild Wings's Sloan Ratio for the quarter that ended in Sep. 2017 was -7.65%.
As of Sep. 2017, Buffalo Wild Wings has a Sloan Ratio of -7.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Buffalo Wild Wings Sloan Ratio % Historical Data
The historical data trend for Buffalo Wild Wings'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 Buffalo Wild Wings's Sloan Ratio %
For the Restaurants subindustry, Buffalo Wild Wings'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.
Buffalo Wild Wings's Sloan Ratio % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Buffalo Wild Wings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Buffalo Wild Wings's Sloan Ratio % falls into.
Buffalo Wild Wings 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.
Buffalo Wild Wings's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Buffalo Wild Wings's Net Income for the trailing twelve months (TTM) ended in Sep. 2017 was 15.619 (Dec. 2016 ) + 21.549 (Mar. 2017 ) + 8.782 (Jun. 2017 ) + 18.18 (Sep. 2017 ) = $64 Mil.
Buffalo Wild Wings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2017 was 68.652 (Dec. 2016 ) + 48.852 (Mar. 2017 ) + 49.909 (Jun. 2017 ) + 43.164 (Sep. 2017 ) = $211 Mil.
Buffalo Wild Wings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2017 was -23.849 (Dec. 2016 ) + -17.14 (Mar. 2017 ) + -9.287 (Jun. 2017 ) + -24.999 (Sep. 2017 ) = $-75 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.
Buffalo Wild Wings (NAS:BWLD) 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 Sep. 2017, Buffalo Wild Wings has a Sloan Ratio of -7.65%, indicating the company is in the safe zone and there is no funny business with accruals.
Buffalo Wild Wings Sloan Ratio % Related Terms
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Buffalo Wild Wings (Buffalo Wild Wings) Business Description
Buffalo Wild Wings operates and franchises restaurants under the names Buffalo Wild Wings, R Taco, and PizzaRev. The Buffalo Wild Wings restaurants, which provide the vast majority of company revenue, have sports-bar atmospheres and feature Buffalo-style chicken wings. The restaurants are designed for group gatherings and feature projection screens and dozens of televisions. About half of the company's restaurants are franchised. The company has a centralized supply chain that serves all company-owned and franchised restaurants. The majority of its restaurants are in the United States, but the company has a small presence in Canada and Mexico and is expanding to the Middle East and Asia.
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