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.
Fox Factory Holding's Sloan Ratio for the quarter that ended in Mar. 2024 was 19.66%.
Warning Sign:
When sloan ratio (30.88)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Fox Factory Holding has a Sloan Ratio of 19.66%, indicating earnings are more likely to be made up of accruals.
Fox Factory Holding Sloan Ratio % Historical Data
The historical data trend for Fox Factory Holding'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 Fox Factory Holding's Sloan Ratio %
For the Auto Parts subindustry, Fox Factory Holding'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.
Fox Factory Holding's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Fox Factory Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Fox Factory Holding's Sloan Ratio % falls into.
Fox Factory Holding 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.
Fox Factory Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Fox Factory Holding's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 39.735 (Jun. 2023 ) + 35.293 (Sep. 2023 ) + 4.051 (Dec. 2023 ) + -3.496 (Mar. 2024 ) = $76 Mil.
Fox Factory Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 63.527 (Jun. 2023 ) + 129.993 (Sep. 2023 ) + 52.058 (Dec. 2023 ) + 9.352 (Mar. 2024 ) = $255 Mil.
Fox Factory Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -12.173 (Jun. 2023 ) + -8.889 (Sep. 2023 ) + -584.998 (Dec. 2023 ) + -15.298 (Mar. 2024 ) = $-621 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.
Fox Factory Holding (NAS:FOXF) 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 Mar. 2024, Fox Factory Holding has a Sloan Ratio of 19.66%, indicating earnings are more likely to be made up of accruals.
Fox Factory Holding Sloan Ratio % Related Terms
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Fox Factory Holding (Fox Factory Holding) Business Description
Fox Factory Holding Corp is a designer, manufacturer, and marketer of performance-defining products and systems used primarily on bikes, Side-by-Sides, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, ATVs, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks. Its business operates under the FOX, FOX RACING SHOX, and RACE FACE brands. Geographically, it derives a majority of revenue from North Americas and also has a presence in Asia, Europe, and the Rest of the World.
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