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.
Altria Group's Sloan Ratio for the quarter that ended in Mar. 2024 was -4.93%.
As of Mar. 2024, Altria Group has a Sloan Ratio of -4.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Altria Group Sloan Ratio % Historical Data
The historical data trend for Altria 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 Altria Group's Sloan Ratio %
For the Tobacco subindustry, Altria 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.
Altria Group's Sloan Ratio % Distribution in the Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Altria Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Altria Group's Sloan Ratio % falls into.
Altria 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.
Altria Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Altria Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 2117 (Jun. 2023 ) + 2166 (Sep. 2023 ) + 2060 (Dec. 2023 ) + 2129 (Mar. 2024 ) = $8,472 Mil.
Altria Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 124 (Jun. 2023 ) + 2952 (Sep. 2023 ) + 3227 (Dec. 2023 ) + 2877 (Mar. 2024 ) = $9,180 Mil.
Altria Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -2802 (Jun. 2023 ) + 1641 (Sep. 2023 ) + -66 (Dec. 2023 ) + 2316 (Mar. 2024 ) = $1,089 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.
Altria Group (NYSE:MO) 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, Altria Group has a Sloan Ratio of -4.93%, indicating the company is in the safe zone and there is no funny business with accruals.
Altria Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Altria Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Horizon Innovations and Helix Innovations. It holds a 10% interest in the world's largest brewer, Anheuser-Busch InBev. Through its tobacco subsidiaries, Altria holds the leading position in cigarettes and smokeless tobacco in the United States and the number-two spot in machine-made cigars. The company's Marlboro brand is the leading cigarette brand in the U.S. with a 42% annual share in 2022. Altria holds a 42% stake in cannabis manufacturer Cronos, has acquired Njoy Holdings in 2023, and recently exited its strategic investment in Juul Labs.
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