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.
Allegiant Travel Co's Sloan Ratio for the quarter that ended in Dec. 2023 was 8.55%.
As of Dec. 2023, Allegiant Travel Co has a Sloan Ratio of 8.55%, indicating the company is in the safe zone and there is no funny business with accruals.
Allegiant Travel Co Sloan Ratio % Historical Data
The historical data trend for Allegiant Travel 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 Allegiant Travel Co's Sloan Ratio %
For the Airlines subindustry, Allegiant Travel 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.
Allegiant Travel Co's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Allegiant Travel Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Allegiant Travel Co's Sloan Ratio % falls into.
Allegiant Travel 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.
Allegiant Travel Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Allegiant Travel Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 56.149 (Mar. 2023 ) + 88.469 (Jun. 2023 ) + -25.066 (Sep. 2023 ) + -1.956 (Dec. 2023 ) = $118 Mil.
Allegiant Travel Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 215.4 (Mar. 2023 ) + 131.212 (Jun. 2023 ) + 22.846 (Sep. 2023 ) + 53.634 (Dec. 2023 ) = $423 Mil.
Allegiant Travel Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -114.239 (Mar. 2023 ) + -403.57 (Jun. 2023 ) + -19.628 (Sep. 2023 ) + -184.44 (Dec. 2023 ) = $-722 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.
Allegiant Travel Co (NAS:ALGT) 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, Allegiant Travel Co has a Sloan Ratio of 8.55%, indicating the company is in the safe zone and there is no funny business with accruals.
Allegiant Travel Co Sloan Ratio % Related Terms
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Allegiant Travel Co (Allegiant Travel Co) Business Description
Allegiant Travel Co provides travel services in the United States. It sells air transportation on a stand-alone basis or bundled with air-related and third-party services and products. Customers may also purchase fixed-fee flying arrangements to receive charter service on a year-round and ad hoc basis. Additionally, customers may purchase hotel rooms, ground transportation, and other attractions (for example, entertainment show tickets) to accommodate a trip. The company's operating segment includes Airline, Sunseeker Resort, and other non-airline. Customers purchase travel tickets at airport ticket counters, online, or through its telephone reservation center.
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