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.
Coinbase Global's Sloan Ratio for the quarter that ended in Sep. 2024 was 0.04%.
As of Sep. 2024, Coinbase Global has a Sloan Ratio of 0.04%, indicating the company is in the safe zone and there is no funny business with accruals.
Coinbase Global Sloan Ratio % Historical Data
The historical data trend for Coinbase Global'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 Coinbase Global's Sloan Ratio %
For the Financial Data & Stock Exchanges subindustry, Coinbase Global'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.
Coinbase Global's Sloan Ratio % Distribution in the Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Coinbase Global's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Coinbase Global's Sloan Ratio % falls into.
Coinbase Global 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.
Coinbase Global's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Coinbase Global's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 273.437 (Dec. 2023 ) + 1176.245 (Mar. 2024 ) + 36.15 (Jun. 2024 ) + 75.495 (Sep. 2024 ) = $1,561 Mil.
Coinbase Global's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -5.186 (Dec. 2023 ) + 411.485 (Mar. 2024 ) + 484.197 (Jun. 2024 ) + 696.544 (Sep. 2024 ) = $1,587 Mil.
Coinbase Global's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 90.509 (Dec. 2023 ) + -125.681 (Mar. 2024 ) + -18.611 (Jun. 2024 ) + -88.677 (Sep. 2024 ) = $-142 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.
Coinbase Global (NAS:COIN) 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. 2024, Coinbase Global has a Sloan Ratio of 0.04%, indicating the company is in the safe zone and there is no funny business with accruals.
Coinbase Global Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Coinbase Global's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 2012, Coinbase is the leading cryptocurrency exchange platform in the United States. The company intends to be the safe and regulation-compliant point of entry for retail investors and institutions into the cryptocurrency economy. Users can establish an account directly with the firm, instead of using an intermediary, and many choose to allow Coinbase to act as a custodian for their cryptocurrency, giving the company breadth beyond that of a traditional financial exchange. While the company still generates the majority of its revenue from transaction fees charged to its retail customers, Coinbase uses internal investment and acquisitions to expand into adjacent businesses, such as prime brokerage and data analytics.
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