What is Global Business Travel Group Sloan Ratio %?
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.
As of Dec. 2024, Global Business Travel Group has a Sloan Ratio of -8.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Global Business Travel Group Sloan Ratio % Historical Data
* 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 Global Business Travel Group's Sloan Ratio %
For the Travel Services subindustry, Global Business Travel Group'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.
Global Business Travel Group's Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Global Business Travel Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Global Business Travel Group's Sloan Ratio % falls into.
Global Business Travel Group 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.
Global Business Travel Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -19 (Mar. 2024 ) + 26 (Jun. 2024 ) + -129 (Sep. 2024 ) + -16 (Dec. 2024 ) = $-138 Mil.
Global Business Travel Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 49 (Mar. 2024 ) + 73 (Jun. 2024 ) + 85 (Sep. 2024 ) + 65 (Dec. 2024 ) = $272 Mil.
Global Business Travel Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -25 (Mar. 2024 ) + -19 (Jun. 2024 ) + -26 (Sep. 2024 ) + -32 (Dec. 2024 ) = $-102 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.
Global Business Travel Group (NYSE:GBTG) 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. 2024, Global Business Travel Group has a Sloan Ratio of -8.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Global Business Travel Group Sloan Ratio % Related Terms
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Global Business Travel Group Inc operates as a business-to-business travel platform. It is engaged in providing software and services to manage travel, expenses, and meetings and events for companies of all sizes. The company is engaged in building the marketplace in B2B travel to deliver unrivaled choice, value, and experiences. It also provides business travel solutions, simplified travel management, and business consulting services. Further, The company generates revenue in two ways that involves fees and other revenues relating to processing and servicing travel transactions received from clients and travel suppliers and revenues for the provision of products and professional services not directly related to transactions received from clients, travel suppliers and Network Partners.
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