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 Mar. 2023, TravelCenters Of America has a Sloan Ratio of 8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
TravelCenters Of America 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 TravelCenters Of America's Sloan Ratio %
For the Specialty Retail subindustry, TravelCenters Of America'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.
TravelCenters Of America's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, TravelCenters Of America's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where TravelCenters Of America's Sloan Ratio % falls into.
TravelCenters Of America 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.
TravelCenters Of America's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
TravelCenters Of America's Net Income for the trailing twelve months (TTM) ended in Mar. 2023 was 63.98 (Jun. 2022 ) + 36.975 (Sep. 2022 ) + 46.801 (Dec. 2022 ) + -6.298 (Mar. 2023 ) = $141 Mil.
TravelCenters Of America's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2023 was 116.413 (Jun. 2022 ) + 4.442 (Sep. 2022 ) + 3.69 (Dec. 2022 ) + 8.821 (Mar. 2023 ) = $133 Mil.
TravelCenters Of America's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2023 was -93.507 (Jun. 2022 ) + -100.507 (Sep. 2022 ) + -50.851 (Dec. 2022 ) + -36.861 (Mar. 2023 ) = $-282 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.
TravelCenters Of America (NAS:TA) 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. 2023, TravelCenters Of America has a Sloan Ratio of 8.10%, indicating the company is in the safe zone and there is no funny business with accruals.
TravelCenters Of America Sloan Ratio % Related Terms
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TravelCenters Of America (TravelCenters Of America) Business Description
TravelCenters Of America Inc is a United states based company which operates travel centers and standalone restaurants. It operated or franchised several travel centers, few standalone truck service facilities, and some standalone restaurants. The company's customers include trucking fleets and their drivers, independent truck drivers, highway and local motorists and casual diners. It generates revenue from fuel operations, non-fuel operations, rents, royalties and other fees from tenants and franchisees.
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