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.
Aristocrat Leisure's Sloan Ratio for the quarter that ended in Sep. 2024 was 14.97%.
As of Sep. 2024, Aristocrat Leisure has a Sloan Ratio of 14.97%, indicating there is a warning stage of accrual build up.
Aristocrat Leisure Sloan Ratio % Historical Data
The historical data trend for Aristocrat Leisure'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 Aristocrat Leisure's Sloan Ratio %
For the Gambling subindustry, Aristocrat Leisure'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.
Aristocrat Leisure's Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Aristocrat Leisure's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Aristocrat Leisure's Sloan Ratio % falls into.
Aristocrat Leisure 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.
Aristocrat Leisure's Sloan Ratio for the fiscal year that ended in Sep. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Aristocrat Leisure's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 429.112 (Mar. 2024 ) + 361.193 (Sep. 2024 ) = €790 Mil.
Aristocrat Leisure's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 395.871 (Mar. 2024 ) + 676.513 (Sep. 2024 ) = €1,072 Mil.
Aristocrat Leisure's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -145.752 (Mar. 2024 ) + -1077.052 (Sep. 2024 ) = €-1,223 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.
Aristocrat Leisure (FRA:AC8) 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, Aristocrat Leisure has a Sloan Ratio of 14.97%, indicating there is a warning stage of accrual build up.
Aristocrat Leisure Sloan Ratio % Related Terms
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Aristocrat Leisure is an electronic gaming machine manufacturer that sells machines to pubs, clubs, and casinos. The firm is licensed in all Australian states and territories, North American jurisdictions, and essentially every major country. Aristocrat is one of the top three largest players in the space along with International Game Technology and Light & Wonder. Through acquisitions of Plarium and more recently Big Fish, Aristocrat now derives a significant proportion of earnings from the faster growing mobile gaming business.
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