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, Liberty Formula One Group has a Sloan Ratio of 3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Liberty Formula One Group 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 Liberty Formula One Group's Sloan Ratio %
For the Entertainment subindustry, Liberty Formula One 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.
Liberty Formula One Group's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Liberty Formula One Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Liberty Formula One Group's Sloan Ratio % falls into.
Liberty Formula One 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.
Liberty Formula One Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Liberty Formula One Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 183 (Mar. 2023 ) + 116 (Jun. 2023 ) + 118 (Sep. 2023 ) + 60 (Dec. 2023 ) = $477 Mil.
Liberty Formula One Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 257 (Mar. 2023 ) + 51 (Jun. 2023 ) + 246 (Sep. 2023 ) + 65 (Dec. 2023 ) = $619 Mil.
Liberty Formula One Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -159 (Mar. 2023 ) + -145 (Jun. 2023 ) + -87 (Sep. 2023 ) + -119 (Dec. 2023 ) = $-510 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.
Liberty Formula One Group (NAS:FWONA) 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, Liberty Formula One Group has a Sloan Ratio of 3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Liberty Formula One Group Sloan Ratio % Related Terms
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Liberty Formula One Group (Liberty Formula One Group) Business Description
Formula One Group controls the exclusive commercial and promotional rights to the FIA Formula One World Championship series, and the monetization of those rights is the primary business of the group. The firm is responsible for development and promotion of the Formula One race series in concert with its three partners: the FIA (the regulatory body), the teams that participate in the series, and the series' commercial partners, which include the race promoters, broadcasters, sponsors, and advertisers. The F1 schedule in 2023 will encompass 23 races held on five continents. Formula One Group is a subsidiary of Liberty Media, which purchased the firm in January 2017. Formula One stock is a tracking stock for the assets under Formula One Group with Liberty Media.
Liberty Formula One Group (Liberty Formula One Group) Headlines
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