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.
Krispy Kreme's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.90%.
As of Dec. 2023, Krispy Kreme has a Sloan Ratio of 0.90%, indicating the company is in the safe zone and there is no funny business with accruals.
Krispy Kreme Sloan Ratio % Historical Data
The historical data trend for Krispy Kreme'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 Krispy Kreme's Sloan Ratio %
For the Grocery Stores subindustry, Krispy Kreme'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.
Krispy Kreme's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Krispy Kreme's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Krispy Kreme's Sloan Ratio % falls into.
Krispy Kreme 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.
Krispy Kreme's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Krispy Kreme's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -0.301 (Mar. 2023 ) + 0.223 (Jun. 2023 ) + -40.457 (Sep. 2023 ) + 2.61 (Dec. 2023 ) = $-38 Mil.
Krispy Kreme's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 10.365 (Mar. 2023 ) + 35.888 (Jun. 2023 ) + -2.221 (Sep. 2023 ) + 1.512 (Dec. 2023 ) = $46 Mil.
Krispy Kreme's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -16.446 (Mar. 2023 ) + -27.656 (Jun. 2023 ) + -34.256 (Sep. 2023 ) + -34.23 (Dec. 2023 ) = $-113 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.
Krispy Kreme (NAS:DNUT) 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, Krispy Kreme has a Sloan Ratio of 0.90%, indicating the company is in the safe zone and there is no funny business with accruals.
Krispy Kreme Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Krispy Kreme's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Krispy Kreme Inc is a sweet treat brands company. The company's Original Glazed doughnut is recognized for its hot-off-the-line, melt-in- your-mouth experience. It operates in 30 countries through its network of fresh Doughnut Shops, partnerships with retailers, and a growing ecommerce and delivery business. The company conducts its business through the following three reported segments namely U.S. and Canada, includes all operations in the U.S. and Canada, Insomnia Cookies shops, and the Branded Sweet Treat Line; International includes operations in the U.K., Ireland, Australia, New Zealand, and Mexico; and Market Development includes franchise operations across the globe, as well as operations in Japan.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
DNUT has been successfully added to your 