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.
Heineken Holding NV's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.56%.
As of Dec. 2023, Heineken Holding NV has a Sloan Ratio of 0.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Heineken Holding NV Sloan Ratio % Historical Data
The historical data trend for Heineken Holding NV'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 Heineken Holding NV's Sloan Ratio %
For the Beverages - Brewers subindustry, Heineken Holding NV'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.
Heineken Holding NV's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Heineken Holding NV's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Heineken Holding NV's Sloan Ratio % falls into.
Heineken Holding NV 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.
Heineken Holding NV's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Heineken Holding NV's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 638.137 (Jun. 2023 ) + 637.95 (Dec. 2023 ) = $1,276 Mil.
Heineken Holding NV's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1118.093 (Jun. 2023 ) + 3705.562 (Dec. 2023 ) = $4,824 Mil.
Heineken Holding NV's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2902.492 (Jun. 2023 ) + -978.19 (Dec. 2023 ) = $-3,881 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.
Heineken Holding NV (OTCPK:HKHHF) 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 Dec. 2023, Heineken Holding NV has a Sloan Ratio of 0.56%, indicating the company is in the safe zone and there is no funny business with accruals.
Heineken Holding NV Sloan Ratio % Related Terms
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Heineken Holding NV (Heineken Holding NV) Business Description
Heineken Holding NV holds more than 50% of Heineken NV's issued shares. It does not engage in operational activities and generates income almost exclusively by receiving Heineken dividends. Heineken Holding NV has five segments: Europe, Americas, Africa, Middle East & Eastern Europe, and Asia-Pacific. Heineken NV brews and sells more than 200 brands of beer in nearly 200 countries. Notable brands include Heineken, Amstel, Dos Equis, Tecate, Goldberg, Red Stripe, Legunitas, and Tiger. Close to half of Heineken NV's revenue comes from Europe, and nearly one third of its revenue comes from the Americas. The remaining revenue is split among the Asia-Pacific, Africa, and Middle East and Eastern Europe regions.
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