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.
Jollibee Foods's Sloan Ratio for the quarter that ended in Mar. 2024 was -6.13%.
As of Mar. 2024, Jollibee Foods has a Sloan Ratio of -6.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Jollibee Foods Sloan Ratio % Historical Data
The historical data trend for Jollibee Foods'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 Jollibee Foods's Sloan Ratio %
For the Restaurants subindustry, Jollibee Foods'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.
Jollibee Foods's Sloan Ratio % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Jollibee Foods's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Jollibee Foods's Sloan Ratio % falls into.
Jollibee Foods 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.
Jollibee Foods's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Jollibee Foods's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 2325.193 (Jun. 2023 ) + 2434.413 (Sep. 2023 ) + 1943.449 (Dec. 2023 ) + 2617.214 (Mar. 2024 ) = ₱9,320 Mil.
Jollibee Foods's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 10392.47 (Jun. 2023 ) + 10181.465 (Sep. 2023 ) + 10984.829 (Dec. 2023 ) + 5078.985 (Mar. 2024 ) = ₱36,638 Mil.
Jollibee Foods's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -2294.787 (Jun. 2023 ) + -4402.617 (Sep. 2023 ) + -4171.076 (Dec. 2023 ) + -1686.625 (Mar. 2024 ) = ₱-12,555 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.
Jollibee Foods (PHS:JFC) 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, Jollibee Foods has a Sloan Ratio of -6.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Jollibee Foods Sloan Ratio % Related Terms
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Jollibee Foods Corp is engaged in operating and franchising quick-service restaurants. The company has three business segments; The food service segment is involved in the operations of QSRs and the manufacture of food, products to be sold to JFC Group-owned and franchised QSR outlets, The franchising segment is involved in the franchising of the JFC Group's QSR store concepts, and The leasing segment leases store sites mainly to the JFC Group's independent franchisees. The group's geographical segments are based on the location of the assets producing revenues in the Philippines and in other locations which include PRC, USA, Canada, Vietnam, Singapore, Malaysia, Italy, UK, UAE, Hongkong, Macau, Brunei, Taiwan, and Australia.
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