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.
Avis Budget Group's Sloan Ratio for the quarter that ended in Mar. 2024 was 14.39%.
As of Mar. 2024, Avis Budget Group has a Sloan Ratio of 14.39%, indicating there is a warning stage of accrual build up.
Avis Budget Group Sloan Ratio % Historical Data
The historical data trend for Avis Budget 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 Avis Budget Group's Sloan Ratio %
For the Rental & Leasing Services subindustry, Avis Budget 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.
Avis Budget Group's Sloan Ratio % Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, Avis Budget Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Avis Budget Group's Sloan Ratio % falls into.
Avis Budget 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.
Avis Budget Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Avis Budget Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 401.505 (Jun. 2023 ) + 586.562 (Sep. 2023 ) + 237.503 (Dec. 2023 ) + -103.96 (Mar. 2024 ) = €1,122 Mil.
Avis Budget Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 888.849 (Jun. 2023 ) + 1174.061 (Sep. 2023 ) + 727.181 (Dec. 2023 ) + 541.88 (Mar. 2024 ) = €3,332 Mil.
Avis Budget Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -3263.728 (Jun. 2023 ) + -1607.892 (Sep. 2023 ) + -381.472 (Dec. 2023 ) + -1396.56 (Mar. 2024 ) = €-6,650 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.
Avis Budget Group (STU:CUCA) 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, Avis Budget Group has a Sloan Ratio of 14.39%, indicating there is a warning stage of accrual build up.
Avis Budget Group Sloan Ratio % Related Terms
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Avis Budget Group Inc is a provider of automotive vehicle rental and car-sharing services. Its brands include Avis, Budget, and Zipcar. Avis is targeted to serve the premium commercial and leisure segments of the travel industry, while Budget is focused on value-conscious customers. The company operates its own network of rental locations and licenses its brands to franchisees. Zipcar is a car-sharing service that allows members to use the company-owned Zipcar fleet at an hourly rate. The company's largest region by revenue is the Americas.
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