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.
Mondelez International's Sloan Ratio for the quarter that ended in Dec. 2023 was -3.60%.
As of Dec. 2023, Mondelez International has a Sloan Ratio of -3.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Mondelez International Sloan Ratio % Historical Data
The historical data trend for Mondelez International'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 Mondelez International's Sloan Ratio %
For the Confectioners subindustry, Mondelez International'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.
Mondelez International's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Mondelez International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mondelez International's Sloan Ratio % falls into.
Mondelez International 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.
Mondelez International's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Mondelez International's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 2081 (Mar. 2023 ) + 944 (Jun. 2023 ) + 984 (Sep. 2023 ) + 950 (Dec. 2023 ) = $4,959 Mil.
Mondelez International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1123 (Mar. 2023 ) + 850 (Jun. 2023 ) + 1177 (Sep. 2023 ) + 1564 (Dec. 2023 ) = $4,714 Mil.
Mondelez International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 636 (Mar. 2023 ) + 614 (Jun. 2023 ) + 536 (Sep. 2023 ) + 1026 (Dec. 2023 ) = $2,812 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.
Mondelez International (NAS:MDLZ) 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, Mondelez International has a Sloan Ratio of -3.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Mondelez International Sloan Ratio % Related Terms
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Mondelez International (Mondelez International) Business Description
Mondelez has operated as an independent organization since its split from the former Kraft Foods North American grocery business in October 2012. The firm is a leading player in the global snack arena with a presence in the biscuit (50% of sales), chocolate (30%), gum/candy (11%), beverage (3%), and cheese and grocery (6%) aisles, as of the end of fiscal 2022. Mondelez's portfolio includes well-known brands like Oreo, Chips Ahoy, Halls, and Cadbury, among others. The firm derives just shy of 40% of revenue from developing markets, about one third from Europe, and the remainder from North America.
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