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.
Emperador's Sloan Ratio for the quarter that ended in Mar. 2024 was 2.97%.
As of Mar. 2024, Emperador has a Sloan Ratio of 2.97%, indicating the company is in the safe zone and there is no funny business with accruals.
Emperador Sloan Ratio % Historical Data
The historical data trend for Emperador'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 Emperador's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Emperador'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.
Emperador's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Emperador's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Emperador's Sloan Ratio % falls into.
Emperador 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.
Emperador's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Emperador's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 2414.087 (Jun. 2023 ) + 2051.122 (Sep. 2023 ) + 1922.109 (Dec. 2023 ) + 1738.185 (Mar. 2024 ) = ₱8,126 Mil.
Emperador's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1370.385 (Jun. 2023 ) + 829.628 (Sep. 2023 ) + 3348.24 (Dec. 2023 ) + 3168.757 (Mar. 2024 ) = ₱8,717 Mil.
Emperador's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -528.49 (Jun. 2023 ) + -1840.637 (Sep. 2023 ) + -1440.331 (Dec. 2023 ) + -1403.407 (Mar. 2024 ) = ₱-5,213 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.
Emperador (PHS:EMI) 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, Emperador has a Sloan Ratio of 2.97%, indicating the company is in the safe zone and there is no funny business with accruals.
Emperador Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Emperador's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Emperador Inc manufactures, sells, and distributes spirits and other alcoholic beverages through two main business segments: brandy and Scotch whiskey. The brandy segment, which accounts for more than half of the company's total revenue focuses on sales in the Philippines and Spain. This segment also has a distribution network for its operations, which includes sales offices and distribution outlets throughout the Philippines. The Scotch whiskey business sells in the United Kingdom. Brands that Emperador owns or licenses include The Dalmore, Fundador, Jura, Emperador, Andy Player, Whyte and Mackay, Smirnoff, and BaR. The company produces in the Philippines and Europe.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
PHS:EMI has been successfully added to your 