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.
Brinker International's Sloan Ratio for the quarter that ended in Sep. 2024 was -1.48%.
As of Sep. 2024, Brinker International has a Sloan Ratio of -1.48%, indicating the company is in the safe zone and there is no funny business with accruals.
Brinker International Sloan Ratio % Historical Data
The historical data trend for Brinker International'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 Brinker International's Sloan Ratio %
For the Restaurants subindustry, Brinker International'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.
Brinker International's Sloan Ratio % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Brinker International's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Brinker International's Sloan Ratio % falls into.
Brinker International 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.
Brinker International's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
Brinker International's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 38.606 (Dec. 2023 ) + 44.804 (Mar. 2024 ) + 53.232 (Jun. 2024 ) + 34.689 (Sep. 2024 ) = €171 Mil.
Brinker International's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 83.63 (Dec. 2023 ) + 119.692 (Mar. 2024 ) + 131.454 (Jun. 2024 ) + 56.583 (Sep. 2024 ) = €391 Mil.
Brinker International's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -37.78 (Dec. 2023 ) + -47.104 (Mar. 2024 ) + -50.352 (Jun. 2024 ) + -50.907 (Sep. 2024 ) = €-186 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.
Brinker International (FRA:BKJ) 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, Brinker International has a Sloan Ratio of -1.48%, indicating the company is in the safe zone and there is no funny business with accruals.
Brinker International Sloan Ratio % Related Terms
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Brinker International Inc operates casual dining restaurants under the brand's Chili Grill and Bar (Chili's) and Maggiano's Little Italy (Maggiano's). Chili's falls in the Bar and Grill category of casual dining. Its menu features Fresh Mex and Fresh Tex favorites including signature items such as slow-smoked baby back ribs, craft burgers, fajitas, and bottomless chips and salsa paired with tableside guacamole. Maggiano's is an Italian restaurant brand with a full lunch and dinner menu offering chef-prepared, such as appetizers, chicken, seafood, veal and prime steaks, and desserts. The company generates maximum revenue from Chili's segment.
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