McRae Industries (McRae Industries) Sloan Ratio % : 2.78% (As of Jul. 2023)

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What is McRae Industries Sloan Ratio %?

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.

McRae Industries's Sloan Ratio for the quarter that ended in Jul. 2023 was 2.78%.

As of Jul. 2023, McRae Industries has a Sloan Ratio of 2.78%, indicating the company is in the safe zone and there is no funny business with accruals.

McRae Industries Sloan Ratio % Historical Data

The historical data trend for McRae Industries'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.

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McRae Industries Sloan Ratio % Chart

McRae Industries Annual Data

Trend

Jul99

Jul00

Jul01

Jul02

Jul03

Jul04

Jul05

Jul21

Jul22

Jul23

Sloan Ratio %

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7.54

-22.34

18.87

2.78

McRae Industries Semi-Annual Data
	Jul89	Jul90	Jul91	Jul92	Jul93	Jul94	Jul95	Jul96	Jul97	Jul98	Jul99	Jul00	Jul01	Jul02	Jul03	Jul04	Jul05	Jul21	Jul22	Jul23
Sloan Ratio %	Get a 7-Day Free Trial															7.54	-22.34	-	18.87	2.78

Competitive Comparison of McRae Industries's Sloan Ratio %

For the Footwear & Accessories subindustry, McRae Industries'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.

McRae Industries's Sloan Ratio % Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, McRae Industries's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where McRae Industries's Sloan Ratio % falls into.

McRae Industries 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.

McRae Industries's Sloan Ratio for the fiscal year that ended in Jul. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Jul. 2023 )	-	Cash Flow from Operations (A: Jul. 2023 )
	-	Cash Flow from Investing (A: Jul. 2023 ))	/	Total Assets (A: Jul. 2023 )
	=	(8.061	-	16.678
	-	-11.271)	/	95.469
	=	2.78%

McRae Industries's Sloan Ratio for the quarter that ended in Jul. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Jul. 2023 )
	=	(8.061	-	16.678
	-	-11.271)	/	95.469
	=	2.78%

For company reported annually, GuruFocus uses latest annual data as the TTM data. McRae Industries's Net Income for the trailing twelve months (TTM) ended in Jul. 2023 was $8.1 Mil.
McRae Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jul. 2023 was $16.7 Mil.
McRae Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jul. 2023 was $-11.3 Mil.

McRae Industries (OTCPK:MCRAA) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Jul. 2023, McRae Industries has a Sloan Ratio of 2.78%, indicating the company is in the safe zone and there is no funny business with accruals.

McRae Industries Sloan Ratio % Related Terms

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McRae Industries (McRae Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » McRae Industries Inc (OTCPK:MCRAA) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

MCRAB:USA

Address

400 North Main Street, P.O. Box 1239, Mount Gilead, NC, USA, 27306

Website

http://www.mcraeindustries.com

McRae Industries Inc operates in the footwear industry. Its principal lines of business are manufacturing and selling military combat boots and importing and selling western and work boots. It operates through the Western and Lifestyle Segments. The Western and Lifestyle segment, which is the key revenue driver, includes western, ladies fashion, and children's footwear products under the Dan Post, Dingo, and Laredo Western Boots brand names.