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.
HD Supply Holdings's Sloan Ratio for the quarter that ended in Oct. 2020 was -29.75%.
As of Oct. 2020, HD Supply Holdings has a Sloan Ratio of -29.75%, indicating there is a warning stage of accrual build up.
HD Supply Holdings Sloan Ratio % Historical Data
The historical data trend for HD Supply Holdings'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 HD Supply Holdings's Sloan Ratio %
For the Industrial Distribution subindustry, HD Supply Holdings'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.
HD Supply Holdings's Sloan Ratio % Distribution in the Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, HD Supply Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where HD Supply Holdings's Sloan Ratio % falls into.
HD Supply Holdings 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.
HD Supply Holdings's Sloan Ratio for the fiscal year that ended in Jan. 2020 is calculated as
HD Supply Holdings's Net Income for the trailing twelve months (TTM) ended in Oct. 2020 was 78.3 (Jan. 2020 ) + 72 (Apr. 2020 ) + 131 (Jul. 2020 ) + 1608.2 (Oct. 2020 ) = $1,890 Mil.
HD Supply Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2020 was 180.4 (Jan. 2020 ) + 137 (Apr. 2020 ) + 202 (Jul. 2020 ) + 184.9 (Oct. 2020 ) = $704 Mil.
HD Supply Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2020 was -16.2 (Jan. 2020 ) + -21 (Apr. 2020 ) + -12 (Jul. 2020 ) + 2824.2 (Oct. 2020 ) = $2,775 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.
HD Supply Holdings (NAS:HDS) 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 Oct. 2020, HD Supply Holdings has a Sloan Ratio of -29.75%, indicating there is a warning stage of accrual build up.
HD Supply Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of HD Supply Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
HD Supply Holdings (HD Supply Holdings) Business Description
Through a combination of acquisitions and organic growth, HD Supply has become one of the largest industrial distributors in North America. It is currently the market leader in the two sectors in which it operates (facilities and home improvement maintenance, repair, and operations and specialty construction). Today, HD Supply offers approximately 600,000 stock-keeping units and serves 500,000 customers through 270 branches and 44 distribution centers across the United States and Canada. HD Supply sold its construction and industrial business for $2.5 billion net of taxes and transaction costs in October 2020. On Nov. 16, 2020, Home Depot announced it had entered into a definitive agreement to acquire HD Supply for $56 per share.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HDS has been successfully added to your 