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 Mar. 2018, Blackhawk Network Holdings has a Sloan Ratio of -3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Blackhawk Network Holdings 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 Blackhawk Network Holdings's Sloan Ratio %
For the Credit Services subindustry, Blackhawk Network Holdings'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.
Blackhawk Network Holdings's Sloan Ratio % Distribution in the Credit Services Industry
For the Credit Services industry and Financial Services sector, Blackhawk Network Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Blackhawk Network Holdings's Sloan Ratio % falls into.
Blackhawk Network Holdings 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.
Blackhawk Network Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2018 was -6.351 (Jun. 2017 ) + -7.766 (Sep. 2017 ) + -128.165 (Dec. 2017 ) + -15.767 (Mar. 2018 ) = $-158 Mil.
Blackhawk Network Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2018 was 25.909 (Jun. 2017 ) + 53.012 (Sep. 2017 ) + 986.778 (Dec. 2017 ) + -853.084 (Mar. 2018 ) = $213 Mil.
Blackhawk Network Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2018 was -28.328 (Jun. 2017 ) + -159.697 (Sep. 2017 ) + -68.295 (Dec. 2017 ) + -16.819 (Mar. 2018 ) = $-273 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.
Blackhawk Network Holdings (NAS:HAWK) 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 Mar. 2018, Blackhawk Network Holdings has a Sloan Ratio of -3.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Blackhawk Network Holdings Sloan Ratio % Related Terms
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Blackhawk Network Holdings (Blackhawk Network Holdings) Business Description
Blackhawk Network Holdings Inc is a United States-based prepaid payment network. It utilizes proprietary technology to offer to consumers and businesses a broad selection of prepaid cards in physical and electronic forms, as well as complementary prepaid products, payment services, and incentives solutions. Blackhawk's product offerings include single-use gift cards, loyalty, incentive and reward products and services; prepaid telecom products and prepaid financial services products, including general purpose reloadable (GPR) cards, and its reload network. The company distributes these prepaid products across multiple high-traffic channels such as grocery, convenience, specialty and online retailers in the Americas, Europe, Africa, Australia and Asia.
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