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.
Beyond Meat's Sloan Ratio for the quarter that ended in Dec. 2023 was -28.76%.
Warning Sign:
When sloan ratio (-28.51)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Beyond Meat has a Sloan Ratio of -28.76%, indicating earnings are more likely to be made up of accruals.
Beyond Meat Sloan Ratio % Historical Data
The historical data trend for Beyond Meat'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 Beyond Meat's Sloan Ratio %
For the Packaged Foods subindustry, Beyond Meat'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.
Beyond Meat's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Beyond Meat's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Beyond Meat's Sloan Ratio % falls into.
Beyond Meat 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.
Beyond Meat's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Beyond Meat's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -55.141 (Mar. 2023 ) + -49.385 (Jun. 2023 ) + -66.051 (Sep. 2023 ) + -142.236 (Dec. 2023 ) = €-312.8 Mil.
Beyond Meat's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -39.393 (Mar. 2023 ) + -42.605 (Jun. 2023 ) + 8.484 (Sep. 2023 ) + -26.174 (Dec. 2023 ) = €-99.7 Mil.
Beyond Meat's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -5.886 (Mar. 2023 ) + -1.635 (Jun. 2023 ) + -1.187 (Sep. 2023 ) + -0.138 (Dec. 2023 ) = €-8.8 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.
Beyond Meat (WBO:BYND) 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, Beyond Meat has a Sloan Ratio of -28.76%, indicating earnings are more likely to be made up of accruals.
Beyond Meat Sloan Ratio % Related Terms
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Beyond Meat Inc is a provider of plant-based meats, such as burgers, sausage, ground beef, and chicken. Unlike other vegetarian products, Beyond Meat seeks to replicate the look, cook, and taste of meat targeted to omnivores and vegetarians alike and is sold in the meat case. The products are widely available across the U.S. and Canada and in 83 additional countries as well. International revenue represented 31% of 2021 sales. The firm's products are available in retail stores and the food service channel. In 2019, before the pandemic struck, sales were evenly split between these two channels, although the mix stood at 70% retail/30% food service in 2021. We think the recovery from the crisis and new deals with McDonald's and Yum Brands will return food-service sales to 50% in time.
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