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.
US Foods Holding's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.05%.
As of Dec. 2023, US Foods Holding has a Sloan Ratio of -1.05%, indicating the company is in the safe zone and there is no funny business with accruals.
US Foods Holding Sloan Ratio % Historical Data
The historical data trend for US Foods Holding'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.
Competitive Comparison of US Foods Holding's Sloan Ratio %
For the Food Distribution subindustry, US Foods Holding'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.
US Foods Holding's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where US Foods Holding's Sloan Ratio % falls into.
US Foods Holding 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.
US Foods Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
US Foods Holding's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 82 (Mar. 2023 ) + 182 (Jun. 2023 ) + 95 (Sep. 2023 ) + 147 (Dec. 2023 ) = $506 Mil.
US Foods Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 279 (Mar. 2023 ) + 374 (Jun. 2023 ) + 282 (Sep. 2023 ) + 205 (Dec. 2023 ) = $1,140 Mil.
US Foods Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -60 (Mar. 2023 ) + -46 (Jun. 2023 ) + -195 (Sep. 2023 ) + -194 (Dec. 2023 ) = $-495 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.
US Foods Holding (NYSE:USFD) 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, US Foods Holding has a Sloan Ratio of -1.05%, indicating the company is in the safe zone and there is no funny business with accruals.
US Foods Holding Sloan Ratio % Related Terms
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US Foods Holding (US Foods Holding) Business Description
us Foods is the second-largest U.S. food service distributor behind Sysco, holding 11% market share of the highly fragmented food service distribution industry. us Foods distributes more than 400,000 food and nonfood products to the healthcare and hospitality industries (collectively 22% of 2021 sales), restaurants (61%), and education, government facilities, and grocers (17%). In addition to its delivery business, the firm has 80 cash-and- carry stores under the Chef'Store banner. After Sysco's attempt to purchase us Foods failed to gain federal approval in 2015, us Foods entered the public market via an initial public offering.
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