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.
Skechers USA's Sloan Ratio for the quarter that ended in Dec. 2023 was -3.54%.
As of Dec. 2023, Skechers USA has a Sloan Ratio of -3.54%, indicating the company is in the safe zone and there is no funny business with accruals.
Skechers USA Sloan Ratio % Historical Data
The historical data trend for Skechers USA'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 Skechers USA's Sloan Ratio %
For the Footwear & Accessories subindustry, Skechers USA'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.
Skechers USA's Sloan Ratio % Distribution in the Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Skechers USA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Skechers USA's Sloan Ratio % falls into.
Skechers USA 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.
Skechers USA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Skechers USA's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 160.443 (Mar. 2023 ) + 152.759 (Jun. 2023 ) + 145.415 (Sep. 2023 ) + 87.182 (Dec. 2023 ) = $546 Mil.
Skechers USA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 235.12 (Mar. 2023 ) + 340.139 (Jun. 2023 ) + 343.428 (Sep. 2023 ) + 312.477 (Dec. 2023 ) = $1,231 Mil.
Skechers USA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -68.799 (Mar. 2023 ) + -153.571 (Jun. 2023 ) + -86.63 (Sep. 2023 ) + -109.019 (Dec. 2023 ) = $-418 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.
Skechers USA (NYSE:SKX) 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, Skechers USA has a Sloan Ratio of -3.54%, indicating the company is in the safe zone and there is no funny business with accruals.
Skechers USA Sloan Ratio % Related Terms
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Skechers USA Inc is a lifestyle footwear company under the Skechers GO brand name. Products offered include various styles of women's shoes, men's shoes, girl's shoes, boy's shoes, performance shoes, and work shoes. Allied products offered are apparel, bags, eyewear, toys, and more. Its products are available for sale at department and specialty stores, athletic and independent retailers, boutiques, and internet retailers. The company's operating segments include Wholesale, and Direct-to-Consumer. It generates maximum revenue from the Wholesale segment.
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