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.
Marfrig Global Foods's Sloan Ratio for the quarter that ended in Mar. 2024 was -3.00%.
As of Mar. 2024, Marfrig Global Foods has a Sloan Ratio of -3.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Marfrig Global Foods Sloan Ratio % Historical Data
The historical data trend for Marfrig Global 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 Marfrig Global Foods's Sloan Ratio %
For the Packaged Foods subindustry, Marfrig Global 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.
Marfrig Global Foods's Sloan Ratio % Distribution in the Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Marfrig Global Foods's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Marfrig Global Foods's Sloan Ratio % falls into.
Marfrig Global 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.
Marfrig Global Foods's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Marfrig Global Foods's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -149.162 (Jun. 2023 ) + -21.185 (Sep. 2023 ) + 2.207 (Dec. 2023 ) + 11.568 (Mar. 2024 ) = €-157 Mil.
Marfrig Global Foods's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 175.025 (Jun. 2023 ) + 1147.894 (Sep. 2023 ) + 764.046 (Dec. 2023 ) + 256.188 (Mar. 2024 ) = €2,343 Mil.
Marfrig Global Foods's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -280.964 (Jun. 2023 ) + -1066.821 (Sep. 2023 ) + -13.847 (Dec. 2023 ) + -410.531 (Mar. 2024 ) = €-1,772 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.
Marfrig Global Foods (FRA:MGP1) 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, Marfrig Global Foods has a Sloan Ratio of -3.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Marfrig Global Foods Sloan Ratio % Related Terms
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Marfrig Global Foods (FRA:MGP1) Business Description
Marfrig Global Foods SA is a Brazilian-based food processing company that produces, processes, and distributes meat and non-meat products. The company has operations worldwide, including in Brazil, Argentina, Chile, Uruguay, and the United States. The company's activities include production and processing of foods made from animal proteins as well as other products such as frozen vegetables and sauces. The company organizes itself into four main segments: Beef - North America, Beef - South America, Poultry, Pork and Processed Products - BRF and Corporate. The company earns more than half of its revenue through its operations in Beef - North America.
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