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.
Competitive Comparison of SodaStream International's Sloan Ratio %
For the Furnishings, Fixtures & Appliances subindustry, SodaStream International'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.
SodaStream International's Sloan Ratio % Distribution in the Furnishings, Fixtures & Appliances Industry
For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, SodaStream International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where SodaStream International's Sloan Ratio % falls into.
SodaStream International 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.
SodaStream International's Sloan Ratio for the fiscal year that ended in Dec. 2017 is calculated as
SodaStream International's Net Income for the trailing twelve months (TTM) ended in Jun. 2018 was 19.755 (Sep. 2017 ) + 25.53 (Dec. 2017 ) + 18.568 (Mar. 2018 ) + 26.11 (Jun. 2018 ) = $90.0 Mil.
SodaStream International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2018 was 31.259 (Sep. 2017 ) + 19.516 (Dec. 2017 ) + 13.617 (Mar. 2018 ) + 31.134 (Jun. 2018 ) = $95.5 Mil.
SodaStream International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2018 was -10.912 (Sep. 2017 ) + -55.248 (Dec. 2017 ) + -33.385 (Mar. 2018 ) + -6.732 (Jun. 2018 ) = $-106.3 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.
SodaStream International (NAS:SODA) 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 Jun. 2018, SodaStream International has a Sloan Ratio of 14.65%, indicating there is a warning stage of accrual build up.
SodaStream International Sloan Ratio % Related Terms
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SodaStream International (SodaStream International) Business Description
SodaStream International Ltd manufactures and sells home beverage carbonation systems, which enable consumers to instantly transform tap water into carbonated soft drinks and sparkling water, and it offers sodas in more than 100 flavors. The group sells its products in retail stores around the world under the SodaStream and Soda-Club brands. The firm operates in the following four main geographical segments: The Americas; Western Europe; Asia-Pacific; and Central/Eastern Europe, the Middle East, and Africa.
SodaStream International (SodaStream International) Headlines
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