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.
Sirius XM Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.91%.
As of Dec. 2023, Sirius XM Holdings has a Sloan Ratio of 0.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Sirius XM Holdings Sloan Ratio % Historical Data
The historical data trend for Sirius XM Holdings'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 Sirius XM Holdings's Sloan Ratio %
For the Entertainment subindustry, Sirius XM Holdings'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.
Sirius XM Holdings's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sirius XM Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sirius XM Holdings's Sloan Ratio % falls into.
Sirius XM Holdings 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.
Sirius XM Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sirius XM Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 233 (Mar. 2023 ) + 310 (Jun. 2023 ) + 363 (Sep. 2023 ) + 352 (Dec. 2023 ) = $1,258 Mil.
Sirius XM Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 350 (Mar. 2023 ) + 451 (Jun. 2023 ) + 478 (Sep. 2023 ) + 571 (Dec. 2023 ) = $1,850 Mil.
Sirius XM Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -235 (Mar. 2023 ) + -130 (Jun. 2023 ) + -189 (Sep. 2023 ) + -132 (Dec. 2023 ) = $-686 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.
Sirius XM Holdings (NAS:SIRI) 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, Sirius XM Holdings has a Sloan Ratio of 0.91%, indicating the company is in the safe zone and there is no funny business with accruals.
Sirius XM Holdings Sloan Ratio % Related Terms
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Sirius XM Holdings (Sirius XM Holdings) Business Description
Sirius XM Holdings is composed of two businesses: SiriusXM and Pandora. SiriusXM transmits music, talk shows, sports, and news via its two satellite radio networks, primarily to consumers in vehicles who pay a subscription fee. The firm's radios come preinstalled on a wide range of light vehicles in the U.S. and Canada. The firm acquired Pandora Media in February 2019 via an all-stock transaction. Pandora is a streaming music platform that offers an ad-supported radio option and a paid on-demand service as well as a robust and growing podcast library. Liberty Media owns 81% of Sirius XM, traded through its Liberty Sirius XM Group tracking stock.
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