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.
Molson Coors Beverage Co's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.09%.
As of Dec. 2023, Molson Coors Beverage Co has a Sloan Ratio of -1.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Molson Coors Beverage Co Sloan Ratio % Historical Data
The historical data trend for Molson Coors Beverage 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.
For the Beverages - Brewers subindustry, Molson Coors Beverage 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.
Molson Coors Beverage Co Sloan Ratio % Distribution
For the Beverages - Alcoholic industry and Consumer Defensive sector, Molson Coors Beverage Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Molson Coors Beverage Co's Sloan Ratio % falls into.
Molson Coors Beverage 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.
Molson Coors Beverage Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Molson Coors Beverage Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 72.5 (Mar. 2023 ) + 342.4 (Jun. 2023 ) + 430.7 (Sep. 2023 ) + 103.3 (Dec. 2023 ) = $949 Mil.
Molson Coors Beverage Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3.4 (Mar. 2023 ) + 891 (Jun. 2023 ) + 710.1 (Sep. 2023 ) + 474.5 (Dec. 2023 ) = $2,079 Mil.
Molson Coors Beverage Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -177.4 (Mar. 2023 ) + -163.2 (Jun. 2023 ) + -327.9 (Sep. 2023 ) + -173.2 (Dec. 2023 ) = $-842 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.
Molson Coors Beverage Co (NYSE:TAP) 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. 2023, Molson Coors Beverage Co has a Sloan Ratio of -1.09%, indicating the company is in the safe zone and there is no funny business with accruals.
Molson Coors Beverage Co Sloan Ratio % Related Terms
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Molson Coors Beverage Co (Molson Coors Beverage Co) Business Description
Molson Coors owns well-known beer brands including Miller, Coors, Blue Moon, and Carling, and ranks as the second largest beer maker in both value and volume terms in the U.S., Canada, and the United Kingdom. Through licensing agreements, it also brews and distributes beer and hard seltzer under partner brands from Heineken, Anheuser-Busch InBev, Asahi, and Coca-Cola. The company uses independent distributors in the U.S. given the three-tier distribution requirements, while using a combination of distributors and an in-house sales team in Canada and Europe. North America remains its largest market contributing over 80% of total revenue.
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