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.
Youku Tudou's Sloan Ratio for the quarter that ended in Sep. 2015 was 3.15%.
As of Sep. 2015, Youku Tudou has a Sloan Ratio of 3.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Youku Tudou Sloan Ratio % Historical Data
The historical data trend for Youku Tudou'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 Youku Tudou's Sloan Ratio %
For the Internet Content & Information subindustry, Youku Tudou'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.
Youku Tudou's Sloan Ratio % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Youku Tudou's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Youku Tudou's Sloan Ratio % falls into.
Youku Tudou 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.
Youku Tudou's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
Youku Tudou's Net Income for the trailing twelve months (TTM) ended in Sep. 2015 was -51.959 (Dec. 2014 ) + -82.942 (Mar. 2015 ) + -55.118 (Jun. 2015 ) + -68.406 (Sep. 2015 ) = $-258.4 Mil.
Youku Tudou's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 143.262 (Dec. 2014 ) + -17.254 (Mar. 2015 ) + 27.945 (Jun. 2015 ) + 14.501 (Sep. 2015 ) = $168.5 Mil.
Youku Tudou's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2015 was -232.443 (Dec. 2014 ) + -139.898 (Mar. 2015 ) + -79.284 (Jun. 2015 ) + -61.593 (Sep. 2015 ) = $-513.2 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.
Youku Tudou (NYSE:YOKU) 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 Sep. 2015, Youku Tudou has a Sloan Ratio of 3.15%, indicating the company is in the safe zone and there is no funny business with accruals.
Youku Tudou Sloan Ratio % Related Terms
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Youku Tudou Inc was incorporated under the laws of the Cayman Islands on September 20, 2005. It is an Internet television company in China. Its internet television platform enables consumers to search, view and share video content quickly and easily across multiple devices. The Company provides online video content library, consisting of professionally produced content including television programs and movies, and, to a lesser extent, user-generated content and in-house productions. As of December 31, 2013, it licensed more than 5,900 movie titles, 2,200 television serial drama titles and over 800 variety shows. It offered approximately 1,447, 347 and 220 episodes of television serial dramas produced in mainland China, Hong Kong and Taiwan, and Korea, respectively, as of December 31, 2013. The Company competes with other online video providers in China, such as iQiyi.com, and large Chinese Internet portals that provide online video product, such as SINA, Tencent and Sohu.
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