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.
Cineworld Group's Sloan Ratio for the quarter that ended in Jun. 2022 was -7.98%.
As of Jun. 2022, Cineworld Group has a Sloan Ratio of -7.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Cineworld Group Sloan Ratio % Historical Data
The historical data trend for Cineworld Group'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 Cineworld Group's Sloan Ratio %
For the Entertainment subindustry, Cineworld 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.
Cineworld Group's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Cineworld Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cineworld Group's Sloan Ratio % falls into.
Cineworld 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.
Cineworld Group's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Cineworld Group's Net Income for the trailing twelve months (TTM) ended in Jun. 2022 was -38.051 (Dec. 2021 ) + -238.566 (Jun. 2022 ) = £-277 Mil.
Cineworld Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2022 was 288.693 (Dec. 2021 ) + 335.437 (Jun. 2022 ) = £624 Mil.
Cineworld Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2022 was -205.672 (Dec. 2021 ) + -68.289 (Jun. 2022 ) = £-274 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.
Cineworld Group (LSE:CINE) 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 Jun. 2022, Cineworld Group has a Sloan Ratio of -7.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Cineworld Group Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Cineworld Group's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Cineworld Group PLC is a diversified media company, which operates chains of movie theaters. Its business segments are the U.S., U.K., & Ireland and the rest of the world (ROW). Within each segment, it operates theaters through different brands. In the U.S., Cineworld owns cinema brands Regal, United Artists, and Edwards theaters. They operate out of Cineworld and Picturehouse in the U.K. and Ireland. Cineworld also owns Cinema City in Central and Eastern Europe and Yes Planet and Rav-Chen in Israel for its ROW segment. The company generates revenue through ticket sales and food, beverage, and merchandise sales. It also earns additional revenue through retail and screen advertising and property market and development. The company generates most of its revenue in the U.S.
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