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.
As of Mar. 2024, National Vision Holdings has a Sloan Ratio of -4.10%, indicating the company is in the safe zone and there is no funny business with accruals.
National Vision Holdings Sloan Ratio % Historical Data
* 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 National Vision Holdings's Sloan Ratio %
For the Specialty Retail subindustry, National Vision Holdings'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.
National Vision Holdings's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, National Vision Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where National Vision Holdings's Sloan Ratio % falls into.
National Vision Holdings 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.
National Vision Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
National Vision Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 5.614 (Jun. 2023 ) + -73.798 (Sep. 2023 ) + -15.987 (Dec. 2023 ) + 12.239 (Mar. 2024 ) = $-72 Mil.
National Vision Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 38.152 (Jun. 2023 ) + 41.056 (Sep. 2023 ) + 19.761 (Dec. 2023 ) + 23.987 (Mar. 2024 ) = $123 Mil.
National Vision Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -27.17 (Jun. 2023 ) + -27.794 (Sep. 2023 ) + -33.243 (Dec. 2023 ) + -18.209 (Mar. 2024 ) = $-106 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.
National Vision Holdings (NAS:EYE) 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 Mar. 2024, National Vision Holdings has a Sloan Ratio of -4.10%, indicating the company is in the safe zone and there is no funny business with accruals.
National Vision Holdings Sloan Ratio % Related Terms
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National Vision Holdings (National Vision Holdings) Business Description
National Vision Holdings Inc is an optical retailer in the U.S. Its product portfolio includes eyeglasses and sunglasses, contact lenses, accessories, and other products. The company has two operating segments; Owned and Host segment includes company-owned brands America's Best and Eyeglass World, In America's Best stores, vision care services are provided by optometrists or by independent professional corporations and Host operating consist of Military and Fred Meyer which provide eye exams by independent optometrists, and the Legacy segment manages the operations of, and supplies inventory and lab processing services to Legacy retail Vision Centers. It earns a majority of its revenue from the Owned and Host segment.
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