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.
Lamar Advertising Co's Sloan Ratio for the quarter that ended in Dec. 2024 was -5.27%.
As of Dec. 2024, Lamar Advertising Co has a Sloan Ratio of -5.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Lamar Advertising Co Sloan Ratio % Historical Data
The historical data trend for Lamar Advertising Co'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 Lamar Advertising Co's Sloan Ratio %
For the REIT - Specialty subindustry, Lamar Advertising Co'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.
Lamar Advertising Co's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Lamar Advertising Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lamar Advertising Co's Sloan Ratio % falls into.
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.
Lamar Advertising Co's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Lamar Advertising Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 78.224 (Mar. 2024 ) + 137.366 (Jun. 2024 ) + 147.476 (Sep. 2024 ) + -1.199 (Dec. 2024 ) = $362 Mil.
Lamar Advertising Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 110.562 (Mar. 2024 ) + 256.342 (Jun. 2024 ) + 227.393 (Sep. 2024 ) + 279.313 (Dec. 2024 ) = $874 Mil.
Lamar Advertising Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -45.016 (Mar. 2024 ) + -31.645 (Jun. 2024 ) + -31.385 (Sep. 2024 ) + -56.86 (Dec. 2024 ) = $-165 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.
Lamar Advertising Co (NAS:LAMR) 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, Lamar Advertising Co has a Sloan Ratio of -5.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Lamar Advertising Co Sloan Ratio % Related Terms
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Lamar Advertising Co is an outdoor advertising companies in the United States and operates as a Real Estate Investment Trust. It rent space for advertising on billboards, buses, shelters, benches, logo plates and in airport terminals and also offer customers a fully integrated service with all aspects of their display requirements from ad copy production to placement and maintenance. It has two operating segments: billboard and Others. Key revenue is generated from Billboard segment.
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