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.
Revlon's Sloan Ratio for the quarter that ended in Dec. 2022 was -16.73%.
As of Dec. 2022, Revlon has a Sloan Ratio of -16.73%, indicating there is a warning stage of accrual build up.
Revlon Sloan Ratio % Historical Data
The historical data trend for Revlon'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.
For the Household & Personal Products subindustry, Revlon'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.
Revlon's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Revlon's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Revlon's Sloan Ratio % falls into.
Revlon 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.
Revlon's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Revlon's Net Income for the trailing twelve months (TTM) ended in Dec. 2022 was -67 (Mar. 2022 ) + -275.6 (Jun. 2022 ) + -152.8 (Sep. 2022 ) + -178.5 (Dec. 2022 ) = $-674 Mil.
Revlon's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2022 was 6.7 (Mar. 2022 ) + -51.2 (Jun. 2022 ) + -206.5 (Sep. 2022 ) + 7.5 (Dec. 2022 ) = $-244 Mil.
Revlon's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2022 was -2.3 (Mar. 2022 ) + -2.2 (Jun. 2022 ) + -3.6 (Sep. 2022 ) + -5.7 (Dec. 2022 ) = $-14 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.
Revlon (OTCPK:REVRQ) 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. 2022, Revlon has a Sloan Ratio of -16.73%, indicating there is a warning stage of accrual build up.
Revlon Sloan Ratio % Related Terms
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Revlon Inc is a company that is principally engaged in the cosmetics industry. The company's reportable segments include Revlon, Elizabeth Arden, Portfolio and Fragrances. It generates maximum revenue from the Revlon segment. Geographically, it operates in North America, EMEA, Asia, Latin America and the Pacific of which the North America region derives the majority of revenue. Some of the company brands include Revlon, Elizabeth Arden, Almay, Revlon Professional, American Crew, CND, and Mitchum brands. The company distributes and sell its products to large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, e-commerce sites, television shopping, department stores, professional hair and nail salons, and specialty cosmetic stores.
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