What is Rocky Mountain Chocolate Factory 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.
* 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.
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Rocky Mountain Chocolate Factory Sloan Ratio % Chart
Competitive Comparison of Rocky Mountain Chocolate Factory's Sloan Ratio %
For the Confectioners subindustry, Rocky Mountain Chocolate Factory'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.
Rocky Mountain Chocolate Factory's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Rocky Mountain Chocolate Factory's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rocky Mountain Chocolate Factory's Sloan Ratio % falls into.
Rocky Mountain Chocolate Factory 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.
Rocky Mountain Chocolate Factory's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was -1.713 (Feb. 2023 ) + -0.823 (May. 2023 ) + -0.999 (Aug. 2023 ) + -0.757 (Nov. 2023 ) = $-4.29 Mil.
Rocky Mountain Chocolate Factory's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was 1.481 (Feb. 2023 ) + -0.422 (May. 2023 ) + -0.545 (Aug. 2023 ) + -1.598 (Nov. 2023 ) = $-1.08 Mil.
Rocky Mountain Chocolate Factory's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was 0.02 (Feb. 2023 ) + 0.853 (May. 2023 ) + -0.619 (Aug. 2023 ) + -1.305 (Nov. 2023 ) = $-1.05 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.
Rocky Mountain Chocolate Factory (NAS:RMCF) 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 Nov. 2023, Rocky Mountain Chocolate Factory has a Sloan Ratio of -10.14%, indicating there is a warning stage of accrual build up.
Rocky Mountain Chocolate Factory Sloan Ratio % Related Terms
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Rocky Mountain Chocolate Factory (Rocky Mountain Chocolate Factory) Business Description
Rocky Mountain Chocolate Factory Inc operates as a manufacturer of chocolate candies and confectionery products. The business activity of the firm functions through Franchising, Manufacturing, Retail Stores, U-Swirl Operations, and Other segments. Its products include varieties of Clusters, Caramels, Creams, Toffees, Mints, and Truffles. Geographically, the company and its subsidiaries have stores in Canada, South Korea, Panama, the Philippines, Qatar, and other countries.
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