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.
Burlington Stores's Sloan Ratio for the quarter that ended in Jan. 2024 was -0.33%.
As of Jan. 2024, Burlington Stores has a Sloan Ratio of -0.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Burlington Stores Sloan Ratio % Historical Data
The historical data trend for Burlington Stores'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 Burlington Stores's Sloan Ratio %
For the Apparel Retail subindustry, Burlington Stores'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.
Burlington Stores's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Burlington Stores's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Burlington Stores's Sloan Ratio % falls into.
Burlington Stores 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.
Burlington Stores's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Burlington Stores's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 32.748 (Apr. 2023 ) + 30.892 (Jul. 2023 ) + 48.551 (Oct. 2023 ) + 227.458 (Jan. 2024 ) = $340 Mil.
Burlington Stores's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was -77.952 (Apr. 2023 ) + 107.778 (Jul. 2023 ) + 240.37 (Oct. 2023 ) + 598.539 (Jan. 2024 ) = $869 Mil.
Burlington Stores's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -86.157 (Apr. 2023 ) + -91.501 (Jul. 2023 ) + -133.626 (Oct. 2023 ) + -192.461 (Jan. 2024 ) = $-504 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.
Burlington Stores (NYSE:BURL) 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, Burlington Stores has a Sloan Ratio of -0.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Burlington Stores Sloan Ratio % Related Terms
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Burlington Stores (Burlington Stores) Business Description
The third-largest American dedicated off-price apparel and home fashion retail firm, with 927 stores as of the end of fiscal 2022, Burlington Stores offers an assortment of products from over 5,000 brands through an everyday-low-price approach that undercuts conventional retailers' regular prices by up to 60%. The company focuses on providing a treasure-hunt experience, with a quickly changing array of merchandise in a relatively low-frills shopping environment. In fiscal 2022, 24% of sales came from accessories and footwear, 22% from women's ready-to-wear apparel, 21% from home décor, 17% from menswear, 12% from youth apparel and baby, and 4% from outerwear. All sales come from the United States.
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