What is Pep Boys - Manny Moe & Jack Sloan Ratio %?
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.
As of Oct. 2015, Pep Boys - Manny Moe & Jack has a Sloan Ratio of -6.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Pep Boys - Manny Moe & Jack Sloan Ratio % Historical Data
* 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 Pep Boys - Manny Moe & Jack's Sloan Ratio %
For the Auto Parts subindustry, Pep Boys - Manny Moe & Jack'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.
Pep Boys - Manny Moe & Jack's Sloan Ratio % Distribution in the Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Pep Boys - Manny Moe & Jack's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Pep Boys - Manny Moe & Jack's Sloan Ratio % falls into.
Pep Boys - Manny Moe & Jack 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.
Pep Boys - Manny Moe & Jack's Net Income for the trailing twelve months (TTM) ended in Oct. 2015 was -26.668 (Jan. 2015 ) + 11.893 (Apr. 2015 ) + 4.81 (Jul. 2015 ) + 1.266 (Oct. 2015 ) = $-9 Mil.
Pep Boys - Manny Moe & Jack's Cash Flow from Operations for the trailing twelve months (TTM) ended in Oct. 2015 was 15.819 (Jan. 2015 ) + 33.829 (Apr. 2015 ) + 33.446 (Jul. 2015 ) + 13.671 (Oct. 2015 ) = $97 Mil.
Pep Boys - Manny Moe & Jack's Cash Flow from Investing for the trailing twelve months (TTM) ended in Oct. 2015 was 7.877 (Jan. 2015 ) + -11.752 (Apr. 2015 ) + -8.284 (Jul. 2015 ) + 1.144 (Oct. 2015 ) = $-11 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.
Pep Boys - Manny Moe & Jack (NYSE:PBY) 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. 2015, Pep Boys - Manny Moe & Jack has a Sloan Ratio of -6.33%, indicating the company is in the safe zone and there is no funny business with accruals.
Pep Boys - Manny Moe & Jack Sloan Ratio % Related Terms
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Pep Boys - Manny Moe & Jack (Pep Boys - Manny Moe & Jack) Business Description
Pep Boys - Manny Moe & Jack began operations in 1921. The Company together with its subsidiaries offers automotive service, tires, parts and accessories. The Company operates in the U.S. automotive aftermarket, which has two general lines of business: the Service business, commonly known as Do-It-For-Me, or "DIFM" (service labor, installed merchandise and tires) and the Retail business, commonly known as Do-It-Yourself, or "DIY" (retail merchandise) and commercial. The Company's store format is the Supercenter, which serves both "DIFM" and "DIY" customers with quality service offerings and merchandise. The Company is complementing the existing Supercenter store base with Service & Tire Centers. These Service & Tire Centers are designed to capture market share and leverage the existing Supercenter and support infrastructure. The Company currently operates stores in 35 states and Puerto Rico. The Company has eight operating segments defined by geographic regions. Each Pep Boys Supercenter carries a similar product line, with variations based on the number and type of cars in the market where the store is located. A Pep Boys Service & Tire Center carries tires and a limited selection of its products. The Company's product lines include: tires batteries; new and remanufactured parts for domestic and import vehicles; chemicals and maintenance items; fashion, electronic, and performance accessories; and a limited amount of select non-automotive merchandise. In addition to offering various high quality name brand products, the Company sells an array of high quality products under various private label names. The Company sells tires under the names DEFINITY, FUTURA and CORNELL, and batteries under the name PROSTART. It also sells wheel covers under the name FUTURA; air filters, anti-freeze, chemicals, cv axles, hub assemblies, lubricants, oil, oil filters, oil treatments, transmission fluids, custom wheels and wiper blades under the name PROLINE; alternators, battery booster packs, alkaline type batteries and starters under the name PROSTART; power steering hoses, chassis parts and power steering pumps under the name PROSTEER; brakes under the name PROSTOP and brakes, batteries, starters, ignitions and chassis under the name VALUEGRADE. The Company's commercial automotive parts delivery program, branded PEP EXPRESS PARTS, is designed to increase the Company's market share with the professional installer and to leverage its inventory investment. The program satisfies the commercial customer's automotive inventory needs by taking advantage of the breadth and quality of the Company's parts inventory as well as its experience supplying its own service bays and mechanics. The Company has a point-of-sale system in all of its stores, which gathers sales and inventory data by stock-keeping unit from each store on a daily basis. It has an electronic parts catalog that allows its associates to efficiently look up the parts that its customers need
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