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.
Upbound Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -5.68%.
As of Dec. 2023, Upbound Group has a Sloan Ratio of -5.68%, indicating the company is in the safe zone and there is no funny business with accruals.
Upbound Group Sloan Ratio % Historical Data
The historical data trend for Upbound 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 Upbound Group's Sloan Ratio %
For the Software - Application subindustry, Upbound 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.
Upbound Group's Sloan Ratio % Distribution in the Software Industry
For the Software industry and Technology sector, Upbound Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Upbound Group's Sloan Ratio % falls into.
Upbound 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.
Upbound Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Upbound Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 47.33 (Mar. 2023 ) + -45.618 (Jun. 2023 ) + 4.363 (Sep. 2023 ) + -11.254 (Dec. 2023 ) = $-5 Mil.
Upbound Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 105.417 (Mar. 2023 ) + 36.543 (Jun. 2023 ) + 77.982 (Sep. 2023 ) + -19.652 (Dec. 2023 ) = $200 Mil.
Upbound Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -9.57 (Mar. 2023 ) + -11.858 (Jun. 2023 ) + -14.763 (Sep. 2023 ) + -14.766 (Dec. 2023 ) = $-51 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.
Upbound Group (NAS:UPBD) 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, Upbound Group has a Sloan Ratio of -5.68%, indicating the company is in the safe zone and there is no funny business with accruals.
Upbound Group Sloan Ratio % Related Terms
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Upbound Group (Upbound Group) Business Description
Upbound Group Inc is an omnichannel platform company committed to elevating financial opportunity for all through inclusive, and technology-driven financial solutions that address the evolving needs and aspirations of consumers. It has four operating segments; The Rent-A-Center Business segment operates lease-to-own stores, the Acima segment, offers the lease-to-own transaction to consumers who do not qualify for financing from the traditional retailer, and also offers the lease-to-own transaction through virtual offering solutions across e-commerce, digital, and mobile channels, Mexico segment offers lease-to-own stores in Mexico. The franchising segment offers the sale of rental merchandise to its franchisees. The company derives a majority of its revenue from the Acima segment.
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