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.
East Imperial's Sloan Ratio for the quarter that ended in Jun. 2023 was -61.00%.
As of Jun. 2023, East Imperial has a Sloan Ratio of -61.00%, indicating there is a warning stage of accrual build up.
East Imperial Sloan Ratio % Historical Data
The historical data trend for East Imperial'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 East Imperial's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, East Imperial'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.
East Imperial's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, East Imperial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where East Imperial's Sloan Ratio % falls into.
East Imperial 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.
East Imperial's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
East Imperial's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was -2.172 (Dec. 2022 ) + -1.951 (Jun. 2023 ) = £-4.12 Mil.
East Imperial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was -1.831 (Dec. 2022 ) + -0.043 (Jun. 2023 ) = £-1.87 Mil.
East Imperial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was 0.088 (Dec. 2022 ) + 0.006 (Jun. 2023 ) = £0.09 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.
East Imperial (LSE:EISB) 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 Jun. 2023, East Imperial has a Sloan Ratio of -61.00%, indicating there is a warning stage of accrual build up.
East Imperial Sloan Ratio % Related Terms
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East Imperial PLC is a purveyor of ultra-premium beverages. It produces and markets a line of branded premium mixers that sell throughout APAC, and EMEA. The group derives revenue from the sale of beverages. Geographically the company generates the majority of its revenue from New Zealand and Australia and also has a presence in the United States, China, Singapore, Europe, and the Rest of the World.
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