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.
Vector Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.27%.
As of Dec. 2023, Vector Group has a Sloan Ratio of -1.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Vector Group Sloan Ratio % Historical Data
The historical data trend for Vector Group'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 Vector Group's Sloan Ratio %
For the Tobacco subindustry, Vector Group'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.
Vector Group's Sloan Ratio % Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Vector Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Vector Group's Sloan Ratio % falls into.
Vector Group 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.
Vector Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Vector Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 34.741 (Mar. 2023 ) + 38.089 (Jun. 2023 ) + 52.699 (Sep. 2023 ) + 57.997 (Dec. 2023 ) = $184 Mil.
Vector Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 120.782 (Mar. 2023 ) + 97.436 (Jun. 2023 ) + 122.753 (Sep. 2023 ) + -130.987 (Dec. 2023 ) = $210 Mil.
Vector Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 0.38 (Mar. 2023 ) + -14.949 (Jun. 2023 ) + -9.887 (Sep. 2023 ) + 9.856 (Dec. 2023 ) = $-15 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.
Vector Group (NYSE:VGR) 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, Vector Group has a Sloan Ratio of -1.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Vector Group Sloan Ratio % Related Terms
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Vector Group Ltd is a holding company whose subsidiaries--Liggett Group, Vector Tobacco, and New Valley-- primarily sell tobacco products and invest in real estate. The Liggett Group and Vector Tobacco subsidiaries sell cigarettes, primarily in the discount segment, in the United States under brand names Eagle 20's, Pyramid, Grand Prix, Liggett Select, and Eve. New Valley, through its majority ownership in Douglas Elliman Realty, invests in real estate worldwide. It also operates the largest residential brokerage company in the New York City area and has additional operations in South Florida, Beverly Hills, Aspen, and Connecticut. Tobacco accounts for more than half of total company revenue; real estate makes up the remainder.
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