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.
Caesars Entertainment's Sloan Ratio for the quarter that ended in Sep. 2024 was -0.85%.
As of Sep. 2024, Caesars Entertainment has a Sloan Ratio of -0.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Caesars Entertainment Sloan Ratio % Historical Data
The historical data trend for Caesars Entertainment'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 Caesars Entertainment's Sloan Ratio %
For the Resorts & Casinos subindustry, Caesars Entertainment'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.
Caesars Entertainment's Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Caesars Entertainment's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Caesars Entertainment's Sloan Ratio % falls into.
Caesars Entertainment 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.
Caesars Entertainment's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Caesars Entertainment's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -72 (Dec. 2023 ) + -158 (Mar. 2024 ) + -122 (Jun. 2024 ) + -9 (Sep. 2024 ) = $-361 Mil.
Caesars Entertainment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 508 (Dec. 2023 ) + 80 (Mar. 2024 ) + 454 (Jun. 2024 ) + 232 (Sep. 2024 ) = $1,274 Mil.
Caesars Entertainment's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -375 (Dec. 2023 ) + -264 (Mar. 2024 ) + -328 (Jun. 2024 ) + -387 (Sep. 2024 ) = $-1,354 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.
Caesars Entertainment (LTS:0A78) 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, Caesars Entertainment has a Sloan Ratio of -0.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Caesars Entertainment Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Caesars Entertainment's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Caesars Entertainment includes about 50 domestic gaming properties across Las Vegas (49% of 2023 EBITDAR before corporate expenses) and regional (48%) markets. Additionally, the company hosts managed properties and digital assets, the later of which produced marginal EBITDA in 2023. Caesars' US presence roughly doubled with the 2020 acquisition by Eldorado, which built its first casino in Reno, Nevada, in 1973 and expanded its presence through prior acquisitions to over 20 properties before merging with legacy Caesars. Caesars' brands include Caesars, Harrah's, Tropicana, Bally's, Isle, and Flamingo. Also, the company owns the US portion of William Hill (it sold the international operation in 2022), a digital sports betting platform.
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