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.
Chapel Down Group's Sloan Ratio for the quarter that ended in Dec. 2023 was 17.70%.
As of Dec. 2023, Chapel Down Group has a Sloan Ratio of 17.70%, indicating there is a warning stage of accrual build up.
Chapel Down Group Sloan Ratio % Historical Data
The historical data trend for Chapel Down Group'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 Chapel Down Group's Sloan Ratio %
For the Beverages - Wineries & Distilleries subindustry, Chapel Down Group'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.
Chapel Down Group's Sloan Ratio % Distribution in the Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Chapel Down Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chapel Down Group's Sloan Ratio % falls into.
Chapel Down Group 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.
Chapel Down Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Chapel Down Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -2.8 (Dec. 2020 ) + 1.234 (Dec. 2021 ) + 0.784 (Dec. 2022 ) + 1.527 (Dec. 2023 ) = £0.75 Mil.
Chapel Down Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.923 (Dec. 2020 ) + 1.439 (Dec. 2021 ) + -0.549 (Dec. 2022 ) + -1.911 (Dec. 2023 ) = £-1.94 Mil.
Chapel Down Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -1.385 (Dec. 2020 ) + -1.106 (Dec. 2021 ) + -2.106 (Dec. 2022 ) + -1.76 (Dec. 2023 ) = £-6.36 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.
Chapel Down Group (LSE:CDGP) 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 Dec. 2023, Chapel Down Group has a Sloan Ratio of 17.70%, indicating there is a warning stage of accrual build up.
Chapel Down Group Sloan Ratio % Related Terms
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Chapel Down Group PLC operates in the beverage industry in the United Kingdom. The company is engaged as a producer and supplier of sparkling wine and still wine. Its product categories are wines, vodka, and brandy and the product portfolio of the company include Chapel Down Bacchus Gin, Brandy and Glasses Gift sets, and Chapel Down Chardonnay Vodka. Geographically, it derives a majority of its revenue from the United Kingdom and also has a presence in Rest of Europe and Rest of the world.
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