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.
As of Dec. 2023, RCI Hospitality Holdings has a Sloan Ratio of 3.98%, indicating the company is in the safe zone and there is no funny business with accruals.
RCI Hospitality Holdings Sloan Ratio % Historical Data
* 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 RCI Hospitality Holdings's Sloan Ratio %
For the Restaurants subindustry, RCI Hospitality Holdings'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.
RCI Hospitality Holdings's Sloan Ratio % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, RCI Hospitality Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where RCI Hospitality Holdings's Sloan Ratio % falls into.
RCI Hospitality Holdings 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.
RCI Hospitality Holdings's Sloan Ratio for the fiscal year that ended in Sep. 2023 is calculated as
RCI Hospitality Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 7.732 (Mar. 2023 ) + 9.085 (Jun. 2023 ) + 2.191 (Sep. 2023 ) + 7.226 (Dec. 2023 ) = $26.2 Mil.
RCI Hospitality Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 16.789 (Mar. 2023 ) + 15.32 (Jun. 2023 ) + 12.126 (Sep. 2023 ) + 13.633 (Dec. 2023 ) = $57.9 Mil.
RCI Hospitality Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -34.426 (Mar. 2023 ) + -8.971 (Jun. 2023 ) + -7.777 (Sep. 2023 ) + -5.08 (Dec. 2023 ) = $-56.3 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.
RCI Hospitality Holdings (NAS:RICK) 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, RCI Hospitality Holdings has a Sloan Ratio of 3.98%, indicating the company is in the safe zone and there is no funny business with accruals.
RCI Hospitality Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of RCI Hospitality Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
RCI Hospitality Holdings (RCI Hospitality Holdings) Business Description
RCI Hospitality Holdings Inc through its subsidiaries owns and operates establishments that offer live adult entertainment, restaurant, and or bar operations. It also owns and operates a communication company serving the adult nightclubs industry. The company's operating business segments are Nightclubs, Bombshells, and Others. It operates nightclubs through the following brand's Rick's Cabaret, Vivid Cabaret, Tootsie's Cabaret, Club Onyx, and Jaguars Club. In the Bombshells segment, the company is building a chain of Restaurants and Sports Bars in Dallas, Austin, and Houston, Texas. It derives majority revenue from the Nightclubs segment that engages in the sale of alcoholic beverages, food, and merchandise items; service in the form of cover charge, dance fees, and room rentals.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
RICK has been successfully added to your 