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.
Seven & i Holdings Co's Sloan Ratio for the quarter that ended in Feb. 2024 was -0.16%.
As of Feb. 2024, Seven & i Holdings Co has a Sloan Ratio of -0.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Seven & i Holdings Co Sloan Ratio % Historical Data
The historical data trend for Seven & i Holdings Co'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 Seven & i Holdings Co's Sloan Ratio %
For the Grocery Stores subindustry, Seven & i Holdings Co'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.
Seven & i Holdings Co's Sloan Ratio % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Seven & i Holdings Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Seven & i Holdings Co's Sloan Ratio % falls into.
Seven & i Holdings Co 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.
Seven & i Holdings Co's Sloan Ratio for the fiscal year that ended in Feb. 2024 is calculated as
Seven & i Holdings Co's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 42180 (May. 2023 ) + 38048 (Aug. 2023 ) + 101934 (Nov. 2023 ) + 42461 (Feb. 2024 ) = 円224,623 Mil.
Seven & i Holdings Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was 317626 (May. 2023 ) + -124633 (Aug. 2023 ) + 293121 (Nov. 2023 ) + 186901 (Feb. 2024 ) = 円673,015 Mil.
Seven & i Holdings Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -95107 (May. 2023 ) + -128033 (Aug. 2023 ) + -70656 (Nov. 2023 ) + -138013 (Feb. 2024 ) = 円-431,809 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.
Seven & i Holdings Co (TSE:3382) 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 Feb. 2024, Seven & i Holdings Co has a Sloan Ratio of -0.16%, indicating the company is in the safe zone and there is no funny business with accruals.
Seven & i Holdings Co Sloan Ratio % Related Terms
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Seven & i Holdings Co (TSE:3382) Business Description
Seven & i Holdings operates 7-Eleven, the world's largest convenience store chain, with nearly 72,000 stores globally. C-store operations, mainly in Japan and North America, represent 75% of group sales (54% of operating revenue) and nearly 85% of operating profits. 7-Eleven Japan, the market leader in Japan's C-store industry, has acquired 45% value share and 38% share in store count. 7-Eleven Inc., the largest C-store chain in the U.S., made a $21 billion acquisition of Speedway in 2020. The deal lifted its total store count to about 13,700. Other retail activities including superstores, department stores, and specialty retailers either earn low margins or are in the red. The financial business, mainly ATM operations, is the other key profit contributor.
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