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.
Dollar General's Sloan Ratio for the quarter that ended in Jan. 2024 was 3.13%.
As of Jan. 2024, Dollar General has a Sloan Ratio of 3.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Dollar General Sloan Ratio % Historical Data
The historical data trend for Dollar General'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 Dollar General's Sloan Ratio %
For the Discount Stores subindustry, Dollar General'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.
Dollar General's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Dollar General's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dollar General's Sloan Ratio % falls into.
Dollar General 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.
Dollar General's Sloan Ratio for the fiscal year that ended in Jan. 2024 is calculated as
Dollar General's Net Income for the trailing twelve months (TTM) ended in Jan. 2024 was 514.38 (Apr. 2023 ) + 468.835 (Jul. 2023 ) + 276.246 (Oct. 2023 ) + 401.813 (Jan. 2024 ) = $1,661 Mil.
Dollar General's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jan. 2024 was 191.115 (Apr. 2023 ) + 535.606 (Jul. 2023 ) + 715.298 (Oct. 2023 ) + 949.779 (Jan. 2024 ) = $2,392 Mil.
Dollar General's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jan. 2024 was -361.602 (Apr. 2023 ) + -403.099 (Jul. 2023 ) + -470.843 (Oct. 2023 ) + -458.479 (Jan. 2024 ) = $-1,694 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.
Dollar General (NYSE:DG) 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, Dollar General has a Sloan Ratio of 3.13%, indicating the company is in the safe zone and there is no funny business with accruals.
Dollar General Sloan Ratio % Related Terms
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Dollar General (Dollar General) Business Description
With over 19,000 locations, Dollar General's banner is nearly ubiquitous across the rural United States. Dollar General serves as a convenient shopping destination for fill-in store trips, with its value proposition most relevant to consumers in small communities with a dearth of shopping options. The retailer operates a frugal store of about 7,500 square feet and primarily offers an assortment of branded and private-label consumable items (80% of net sales) such as paper and cleaning products, packaged and perishable food, tobacco, and health and beauty items at low prices. Dollar General also offers a limited assortment of seasonal merchandise, home products, and apparel. The firm sells most items at a price point of $10 or lower.
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