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.
Nexstar Media Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -3.97%.
As of Dec. 2023, Nexstar Media Group has a Sloan Ratio of -3.97%, indicating the company is in the safe zone and there is no funny business with accruals.
Nexstar Media Group Sloan Ratio % Historical Data
The historical data trend for Nexstar Media 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 Nexstar Media Group's Sloan Ratio %
For the Entertainment subindustry, Nexstar Media 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.
Nexstar Media Group's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Nexstar Media Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nexstar Media Group's Sloan Ratio % falls into.
Nexstar Media 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.
Nexstar Media Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Nexstar Media Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 111 (Mar. 2023 ) + 96 (Jun. 2023 ) + 25 (Sep. 2023 ) + 114 (Dec. 2023 ) = $346 Mil.
Nexstar Media Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 494 (Mar. 2023 ) + 185 (Jun. 2023 ) + 138 (Sep. 2023 ) + 182 (Dec. 2023 ) = $999 Mil.
Nexstar Media Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -36 (Mar. 2023 ) + -37 (Jun. 2023 ) + -64 (Sep. 2023 ) + -36 (Dec. 2023 ) = $-173 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.
Nexstar Media Group (NAS:NXST) 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, Nexstar Media Group has a Sloan Ratio of -3.97%, indicating the company is in the safe zone and there is no funny business with accruals.
Nexstar Media Group Sloan Ratio % Related Terms
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Nexstar Media Group (Nexstar Media Group) Business Description
Nexstar is the largest television station owner/operator in the United States, with 200 stations in 116 markets. Of its 200 full-power stations, 155 are affiliated with the four national broadcasters: CBS, Fox, NBC, and ABC. The 2019 merger with Tribune made Nexstar the top broadcast affiliate for both Fox and CBS as well as the number-two partner for NBC and number three for ABC. The firm has networks in 12 of the top 20 television markets and reaches over 68% of U.S. TV households. Nexstar also owns NewsNation (formerly WGN), a nationwide pay-television network, 75% of The CW, and a 31% stake in Food Network and Cooking Channel.
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