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.
National Beverage's Sloan Ratio for the quarter that ended in Jan. 2024 was 1.60%.
As of Jan. 2024, National Beverage has a Sloan Ratio of 1.60%, indicating the company is in the safe zone and there is no funny business with accruals.
National Beverage Sloan Ratio % Historical Data
The historical data trend for National Beverage'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 National Beverage's Sloan Ratio %
For the Beverages - Non-Alcoholic subindustry, National Beverage'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.
National Beverage's Sloan Ratio % Distribution in the Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, National Beverage's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where National Beverage's Sloan Ratio % falls into.
National Beverage 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.
National Beverage's Sloan Ratio for the fiscal year that ended in Apr. 2023 is calculated as
National Beverage's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 36.303 (Apr. 2023 ) + 49.631 (Jul. 2023 ) + 43.788 (Oct. 2023 ) + 39.592 (Jan. 2024 ) = $169 Mil.
National Beverage's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 49.412 (Apr. 2023 ) + 70.143 (Jul. 2023 ) + 31.916 (Oct. 2023 ) + 35.406 (Jan. 2024 ) = $187 Mil.
National Beverage's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -9.681 (Apr. 2023 ) + -5.448 (Jul. 2023 ) + -7.284 (Oct. 2023 ) + -6.687 (Jan. 2024 ) = $-29 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.
National Beverage (NAS:FIZZ) 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, National Beverage has a Sloan Ratio of 1.60%, indicating the company is in the safe zone and there is no funny business with accruals.
National Beverage Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of National Beverage's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
National Beverage (National Beverage) Business Description
National Beverage Corp is a non-alcoholic beverage company in the U.S. Its portfolio skews toward functional drinks (that is those purporting to offer health benefits) and is anchored by the popular LaCroix sparkling water trademark. Other offerings include Rip It energy drinks, Everfresh juices, and soda brands like Shasta and Faygo. The firm controls the majority of its production and distribution apparatus, with very little outsourcing. In terms of go-to-market, it uses warehouse distribution for big-box retailers, direct-store delivery for convenience stores and other small outlets, and food-service distributors for the food-service channel (schools, hospitals, restaurants). It is controlled by chairman and CEO Nick Caporella, who owns over 73% of the common stock.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FIZZ has been successfully added to your 