Q.E.P. Co (Q.E.P. Co) Sloan Ratio %

: -37.15% (As of Nov. 2023)

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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.

Q.E.P. Co's Sloan Ratio for the quarter that ended in Nov. 2023 was -37.15%.

As of Nov. 2023, Q.E.P. Co has a Sloan Ratio of -37.15%, indicating there is a warning stage of accrual build up.

Q.E.P. Co Sloan Ratio % Historical Data

The historical data trend for Q.E.P. Co'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.

* Premium members only.

Q.E.P. Co Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Sloan Ratio %

23.07

-11.33

-10.74

9.53

1.72

Q.E.P. Co Quarterly Data
	Feb19	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23
Sloan Ratio %																-	1.72	-10.73	-19.20	-37.15

Competitive Comparison

For the Tools & Accessories subindustry, Q.E.P. Co'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.

Q.E.P. Co Sloan Ratio % Distribution

For the Industrial Products industry and Industrials sector, Q.E.P. Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Q.E.P. Co's Sloan Ratio % falls into.

Q.E.P. Co 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.

Q.E.P. Co's Sloan Ratio for the fiscal year that ended in Feb. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Feb. 2023 )	-	Cash Flow from Operations (A: Feb. 2023 )
	-	Cash Flow from Investing (A: Feb. 2023 ))	/	Total Assets (A: Feb. 2023 )
	=	(-0.063	-	-0.072
	-	-3.372)	/	196.006
	=	1.72%

Q.E.P. Co's Sloan Ratio for the quarter that ended in Nov. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Nov. 2023 )
	=	(-4.037	-	31.843
	-	20.015)	/	150.459
	=	-37.15%

Q.E.P. Co's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was -0.782 (Feb. 2023 ) + 0.925 (May. 2023 ) + 1.682 (Aug. 2023 ) + -5.862 (Nov. 2023 ) = $-4.0 Mil.
Q.E.P. Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was 2.148 (Feb. 2023 ) + 13.084 (May. 2023 ) + 10.387 (Aug. 2023 ) + 6.224 (Nov. 2023 ) = $31.8 Mil.
Q.E.P. Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was -0.309 (Feb. 2023 ) + 0.236 (May. 2023 ) + -0.347 (Aug. 2023 ) + 20.435 (Nov. 2023 ) = $20.0 Mil.

Q.E.P. Co (OTCPK:QEPC) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Nov. 2023, Q.E.P. Co has a Sloan Ratio of -37.15%, indicating there is a warning stage of accrual build up.

Q.E.P. Co Sloan Ratio % Related Terms

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Q.E.P. Co (Q.E.P. Co) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Industrial Products » Q.E.P. Co Inc (OTCPK:QEPC) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

1001 Broken Sound Parkway North West, Suite A, Boca Raton, FL, USA, 33487

Website

https://www.qep.com

Q.E.P. Co Inc is a provider of flooring and industrial solutions. The company is a manufacturer, marketer, and distributor of hardwood and laminate flooring, flooring installation tools, adhesives and flooring related products targeted for the professional installer as well as the do-it-yourselfer. It also provides industrial tools to the industrial trades under brand names including QEP, ROBERTS, Capitol, Harris Wood, Fausfloor, Vitrex, Homelux, TileRite, PRCI, Nupla, HISCO, Plasplugs, Ludell, Porta-Nails, Tomecanic, Benetiere, and Elastiment. The company sells its products to home improvement retail centers, specialty distribution outlets, municipalities and industrial solution providers in an approx 50 states and throughout the world.

Executives

Lawrence P Levine	officer: SVP and General Counsel	1001 BROKEN SOUND PARKWAY NW, SUITE A, BOCA RATON FL 33487
Robert G Walters	director	1001 BROKEN SOUND PARKWAY NW SUITE A, BOCA RATON FL 33487
Kenneth Weiss	officer: SVP Commercial Sales	1001 BROKEN SOUND PARKWAY NW SUITE A, BOCA RATON FL 33487
David L Kreilein	director	2930 INDUSTRIEAL ST, WISCONSIN RAPIDS WI 54495-8020
Muir Robert W Jr	director
Laura M Holm	director	C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
James Brower	officer: Chief Operating Officer	C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
Jamie Clingan	officer: Vice President Marketing	C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
Bruce Maclaren	officer: Chief Executive Officer Europe	C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
S Scott Fitzpatrick	officer: Chief Accounting Officer	C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, NW, SUITE A, BOCA RATON FL 33487
Stuart F Fleischer	officer: Chief Financial Officer
Randall Paulfus	officer: Interim CFO	C/O PC UNIVERSE, INC., 504 NW 77TH STREET, BOCA RATON FL 33487
Richard A Brooke	officer: Senior Vice President	C/O Q.E.P. CO., INC., 1001 BROKEN SOUND PARKWAY, BOCA RATON FL 33487
Eric Demaree	officer: EVP, Sales	C/O Q.E.P. CO., INC., 1081 HOLLAND DRIVE, BOCA RATON FL 33487
Susan J Gould	10 percent owner