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.
Oil-Dri of America's Sloan Ratio for the quarter that ended in Jan. 2024 was 5.93%.
As of Jan. 2024, Oil-Dri of America has a Sloan Ratio of 5.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Oil-Dri of America Sloan Ratio % Historical Data
The historical data trend for Oil-Dri of America'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 Oil-Dri of America's Sloan Ratio %
For the Specialty Chemicals subindustry, Oil-Dri of America'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.
Oil-Dri of America's Sloan Ratio % Distribution in the Chemicals Industry
For the Chemicals industry and Basic Materials sector, Oil-Dri of America's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Oil-Dri of America's Sloan Ratio % falls into.
Oil-Dri of America 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.
Oil-Dri of America's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as
Oil-Dri of America's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 8.535 (Apr. 2023 ) + 11.919 (Jul. 2023 ) + 10.742 (Oct. 2023 ) + 12.382 (Jan. 2024 ) = $43.6 Mil.
Oil-Dri of America's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 22.574 (Apr. 2023 ) + 12.973 (Jul. 2023 ) + 8.564 (Oct. 2023 ) + 9.381 (Jan. 2024 ) = $53.5 Mil.
Oil-Dri of America's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -4.799 (Apr. 2023 ) + -7.133 (Jul. 2023 ) + -8.064 (Oct. 2023 ) + -7.482 (Jan. 2024 ) = $-27.5 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.
Oil-Dri of America (NYSE:ODC) 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, Oil-Dri of America has a Sloan Ratio of 5.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Oil-Dri of America Sloan Ratio % Related Terms
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Oil-Dri of America (Oil-Dri of America) Business Description
Oil-Dri Corp of America develops, manufactures, and markets sorbent products made predominantly from clay. Its absorbent offerings, which draw liquid up, include cat litter, floor products, toxin control substances for livestock, and agricultural chemical carriers. The company has two segments based on the different characteristics of two primary customer groups namely Retail and Wholesale Products Group and Business to Business Products Group. The company's products are sold under various brands such as Cat's Pride, Jonny Cat, Amlan, Agsorb, Verge, Pure-Flo, and Ultra-Clear.
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