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Mead Johnson Nutrition Co (Mead Johnson Nutrition Co) Sloan Ratio % : 0.14% (As of Mar. 2017)


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What is Mead Johnson Nutrition Co Sloan Ratio %?

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.

Mead Johnson Nutrition Co's Sloan Ratio for the quarter that ended in Mar. 2017 was 0.14%.

As of Mar. 2017, Mead Johnson Nutrition Co has a Sloan Ratio of 0.14%, indicating the company is in the safe zone and there is no funny business with accruals.


Mead Johnson Nutrition Co Sloan Ratio % Historical Data

The historical data trend for Mead Johnson Nutrition Co'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.

* Premium members only.

Mead Johnson Nutrition Co Sloan Ratio % Chart

Mead Johnson Nutrition Co Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.58 3.39 2.89 -2.08 0.05

Mead Johnson Nutrition Co Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.34 -1.10 -3.53 0.05 0.14

Competitive Comparison of Mead Johnson Nutrition Co's Sloan Ratio %

For the Packaged Foods subindustry, Mead Johnson Nutrition Co'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.


Mead Johnson Nutrition Co's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Mead Johnson Nutrition Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Mead Johnson Nutrition Co's Sloan Ratio % falls into.



Mead Johnson Nutrition Co 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.

Mead Johnson Nutrition Co's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2016 )-Cash Flow from Operations (A: Dec. 2016 )
-Cash Flow from Investing (A: Dec. 2016 ))/Total Assets (A: Dec. 2016 )
=(544.9-691.6
--148.7)/4087.7
=0.05%

Mead Johnson Nutrition Co's Sloan Ratio for the quarter that ended in Mar. 2017 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2017 )
=(592.1-727.9
--141.6)/4227.1
=0.14%

Mead Johnson Nutrition Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2017 was 155.1 (Jun. 2016 ) + 149.3 (Sep. 2016 ) + 167.8 (Dec. 2016 ) + 119.9 (Mar. 2017 ) = $592 Mil.
Mead Johnson Nutrition Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2017 was 116 (Jun. 2016 ) + 234.6 (Sep. 2016 ) + 180.9 (Dec. 2016 ) + 196.4 (Mar. 2017 ) = $728 Mil.
Mead Johnson Nutrition Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2017 was -25.1 (Jun. 2016 ) + -29.4 (Sep. 2016 ) + -38.7 (Dec. 2016 ) + -48.4 (Mar. 2017 ) = $-142 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.


Mead Johnson Nutrition Co  (NYSE:MJN) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2017, Mead Johnson Nutrition Co has a Sloan Ratio of 0.14%, indicating the company is in the safe zone and there is no funny business with accruals.


Mead Johnson Nutrition Co Sloan Ratio % Related Terms

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Mead Johnson Nutrition Co (Mead Johnson Nutrition Co) Business Description

Traded in Other Exchanges
N/A
Address
Mead Johnson Nutrition makes, distributes, and markets pediatric nutrition products worldwide under a variety of brands, including Enfamil, its largest label, along with Sustagen, Enfagrow, and Nutramigen. Infant formula represented 59% of 2015 sales and children's nutrition 39%, with expectant and nursing mother nutrition and pediatric vitamins comprising the remainder. The company sells its products globally; 73% of sales were generated outside the United States in 2015. At about 30% of revenue, China is the company's largest market.
Executives
Kimberly A Casiano director C/O FORD MOTOR COMPANY, ONE AMERICAN ROAD, DEARBORN MI 48126
James E. Shiah officer: SVP and Controller 2 PARK AVENUE, NEW YORK NY 10016
Howard B Bernick director 1100 N WOOD DALE RD, WOOD DALE IL 60191
Michael A. Sherman director 3000 KENT AVE STE A1-100, WEST LAFAYETTE IN 47906
Robert S Singer director 6301 FITCH PATH, NEW ALBANY OH 43054
Celeste A. Clark director C/O ADVANCEPIERRE FOODS HOLDINGS, INC., 9987 CARVER ROAD, BLUE ASH OH 45242
Peter Gervis Ratcliffe director
Steven Altschuler director MEAD JOHNSON NUTRITION COMPANY, 2701 PATRIOT BLVD, GLENVIEW IL 60026
Patrick M Sheller officer: SVP, Gen. Counsel & Secretary 343 STATE STREET, ROCHESTER NY 14650
Elliot Sigal director
James M Cornelius director
Michael Grobstein director C/O GUIDANT CORP, 111 MONUMENT CIRCLE #2900, INDIANAPOLIS IN 46204-5129
Anna C Catalano director 1313 NORTH MARKET STREET, WILMINGTON DE 19894
Peter G Leemputte officer: EVP and CFO CHICAGO TITLE CORP, 171 N CLARK ST, CHICAGO IL 80601
Lynn H Clark officer: Sr. VP, Human Resources 2400 WEST LLOYD EXPRESSWAY, EVANSVILLE IL 47721

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