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.
Cabela′s's Sloan Ratio for the quarter that ended in Jun. 2017 was 2.33%.
As of Jun. 2017, Cabela′s has a Sloan Ratio of 2.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Cabela′s Sloan Ratio % Historical Data
The historical data trend for Cabela′s'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 Cabela′s's Sloan Ratio %
For the Specialty Retail subindustry, Cabela′s'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.
Cabela′s's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Cabela′s's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cabela′s's Sloan Ratio % falls into.
Cabela′s 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.
Cabela′s's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Cabela′s's Net Income for the trailing twelve months (TTM) ended in Jun. 2017 was 28.24 (Sep. 2016 ) + 58.059 (Dec. 2016 ) + 19.063 (Mar. 2017 ) + 28.348 (Jun. 2017 ) = $134 Mil.
Cabela′s's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2017 was 65.369 (Sep. 2016 ) + 222.808 (Dec. 2016 ) + 75.083 (Mar. 2017 ) + 180.52 (Jun. 2017 ) = $544 Mil.
Cabela′s's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2017 was -485.402 (Sep. 2016 ) + -84.509 (Dec. 2016 ) + 251.068 (Mar. 2017 ) + -292.18 (Jun. 2017 ) = $-611 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.
Cabela′s (NYSE:CAB) 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 Jun. 2017, Cabela′s has a Sloan Ratio of 2.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Cabela′s Sloan Ratio % Related Terms
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Cabela's Inc was founded in 1961. The Company is a specialty retailer, and the direct marketer, of hunting, fishing, camping, and related outdoor merchandise. It also issues Cabela's CLUB Visa credit card, which serves as its customer loyalty rewards program. The Company operates in four segments Retail, Direct, Financial Services, and Corporate Overhead and Other. In retail segment the Company operated 77 retail stores, 68 stores in 36 states and nine stores in six Canadian provinces. During 2015, it opened 13 retail stores, 11 stores in the United States and two in Canada. It has two basic store formats. Its legacy stores refer to traditional retail stores that opened in August 2008 and earlier. It has 28 traditional, or legacy, retail stores, which offers a tourist-type experience. Its retail stores often attract the construction and development of hotels, restaurants, and other retail establishments adjacent to these stores. The Direct segment sells products through its e-commerce websites (Cabelas.com and Cabelas.ca) and direct mail catalogs. It markets its products through websites, mobile devices, and its print catalog distributions. The Financial Services segment provides customers with a rewards program that enhances revenue, operating profitability, and customer loyalty in its Retail and Direct businesses. Through its wholly-owned bank subsidiary, World's Foremost Bank, it issues and manages the Cabela's CLUB Visa credit card, a rewards based credit card program. The Company's product assortments includes merchandise and equipment for hunting, fishing, marine use, camping, and recreational sport shooting, along with casual and outdoor apparel and footwear, optics, vehicle accessories, and gifts and home furnishings with an outdoor theme. The Corporate Overhead and Other segment includes the value of unredeemed points earned that are associated with the Company's loyalty rewards programs for Cabela's CLUB issued credit cards, net of the estimated costs of the points; amounts received from outfitter services; real estate rental income; land sales; and fees earned from a travel business and other complementary business services. The Company competes with the outdoor recreation and casual apparel and footwear markets. It competes directly or indirectly with other broad-line merchants, large-format sporting goods stores and chains, mass merchandisers, warehouse clubs, discount and department stores, small specialty retailers, and catalog and Internet-based retailers.
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