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.
Shutterfly's Sloan Ratio for the quarter that ended in Jun. 2019 was -9.51%.
As of Jun. 2019, Shutterfly has a Sloan Ratio of -9.51%, indicating the company is in the safe zone and there is no funny business with accruals.
Shutterfly Sloan Ratio % Historical Data
The historical data trend for Shutterfly'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 Shutterfly's Sloan Ratio %
For the Personal Services subindustry, Shutterfly'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.
Shutterfly's Sloan Ratio % Distribution in the Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Shutterfly's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Shutterfly's Sloan Ratio % falls into.
Shutterfly 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.
Shutterfly's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
Shutterfly's Net Income for the trailing twelve months (TTM) ended in Jun. 2019 was -73.543 (Sep. 2018 ) + 177.616 (Dec. 2018 ) + -83.619 (Mar. 2019 ) + -12.732 (Jun. 2019 ) = $8 Mil.
Shutterfly's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2019 was 27.041 (Sep. 2018 ) + 374.45 (Dec. 2018 ) + -144.115 (Mar. 2019 ) + -21.502 (Jun. 2019 ) = $236 Mil.
Shutterfly's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2019 was -2.238 (Sep. 2018 ) + -10.585 (Dec. 2018 ) + -12.253 (Mar. 2019 ) + -23.198 (Jun. 2019 ) = $-48 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.
Shutterfly (NAS:SFLY) 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. 2019, Shutterfly has a Sloan Ratio of -9.51%, indicating the company is in the safe zone and there is no funny business with accruals.
Shutterfly Sloan Ratio % Related Terms
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Shutterfly Inc. is a personal services company that primarily manufactures and retails photo-based products and services for customers in the United States through its portfolio of brands. The company segments its activities into Consumer, Enterprise, and Corporate units. Shutterfly derives the vast majority of its revenue from its Consumer division, which produces and sells professionally bound photo books, greeting and stationary cards, personalized calendars, and prints. These products are all manufactured in the company's facilities located in the United States. Shutterfly also retails photo-based merchandise such as mugs, candles, pillows, and blankets that are manufactured by third-party firms. Substantially all of the company's sales are from the United States.
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