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.
Campbell Soup Co's Sloan Ratio for the quarter that ended in Jan. 2024 was 0.90%.
As of Jan. 2024, Campbell Soup Co has a Sloan Ratio of 0.90%, indicating the company is in the safe zone and there is no funny business with accruals.
Campbell Soup Co Sloan Ratio % Historical Data
The historical data trend for Campbell Soup 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.
Competitive Comparison of Campbell Soup Co's Sloan Ratio %
For the Packaged Foods subindustry, Campbell Soup 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.
Campbell Soup Co's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Campbell Soup Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Campbell Soup Co's Sloan Ratio % falls into.
Campbell Soup 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.
Campbell Soup Co's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as
Campbell Soup Co's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 160 (Apr. 2023 ) + 169 (Jul. 2023 ) + 234 (Oct. 2023 ) + 203 (Jan. 2024 ) = $766 Mil.
Campbell Soup Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 186 (Apr. 2023 ) + 225 (Jul. 2023 ) + 174 (Oct. 2023 ) + 510 (Jan. 2024 ) = $1,095 Mil.
Campbell Soup Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -111 (Apr. 2023 ) + -71 (Jul. 2023 ) + -137 (Oct. 2023 ) + -119 (Jan. 2024 ) = $-438 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.
Campbell Soup Co (NYSE:CPB) 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 Jan. 2024, Campbell Soup Co has a Sloan Ratio of 0.90%, indicating the company is in the safe zone and there is no funny business with accruals.
Campbell Soup Co Sloan Ratio % Related Terms
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Campbell Soup Co (Campbell Soup Co) Business Description
With a history that dates back around 150 years, Campbell Soup is now a leading manufacturer and marketer of branded convenience food products, most notably soup. The firm's product assortment includes well-known brands like Campbell's, Pace, Prego, Swanson, V8, and Pepperidge Farm. Following the sale of its international snacking operations in calendar 2019, the firm derives nearly all of its sales from the United States. Campbell has made a handful of acquisitions to reshape its product mix in the past several years, including the tie-up with Snyder's-Lance in March 2018, which enhanced its exposure to the faster-growing on-trend snack food aisle, complementing its Pepperidge Farm lineup.
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