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. 2015, Kuoni Reisen Holding AG has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Kuoni Reisen Holding AG 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 Kuoni Reisen Holding AG's Sloan Ratio %
For the Leisure subindustry, Kuoni Reisen Holding AG'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.
Kuoni Reisen Holding AG's Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Kuoni Reisen Holding AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kuoni Reisen Holding AG's Sloan Ratio % falls into.
Kuoni Reisen Holding AG 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.
Kuoni Reisen Holding AG's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Kuoni Reisen Holding AG's Net Income for the trailing twelve months (TTM) ended in Dec. 2015 was 14.6 (Dec. 2014 ) + -187 (Jun. 2015 ) + -121.5 (Sep. 2015 ) + -1.2 (Dec. 2015 ) = CHF-295 Mil.
Kuoni Reisen Holding AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2015 was 0 (Dec. 2014 ) + 196.7 (Jun. 2015 ) + 15.6 (Sep. 2015 ) + -18 (Dec. 2015 ) = CHF194 Mil.
Kuoni Reisen Holding AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2015 was 0 (Dec. 2014 ) + -0.1 (Jun. 2015 ) + -215.7 (Sep. 2015 ) + 105.5 (Dec. 2015 ) = CHF-110 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.
Kuoni Reisen Holding AG (LTS:0QPL) 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. 2015, Kuoni Reisen Holding AG has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Kuoni Reisen Holding AG Sloan Ratio % Related Terms
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Kuoni Reisen Holding AG (LTS:0QPL) Business Description
Kuoni Reisen Holding AG was established in 1906. The Company operates travel agencies and provides travel planning services. It provides leisure travel services as well as offers tours and support services for overseas travelers in Europe. The Company's business activities are split into three different areas: Destination Management, Tour operating and Visa services. Destination & Accommodation services involve procurement and supply of services as a specialized wholesaler and supplier. It provides accommodation and land components to online & offline travel agencies, tour operators and aggregators via its efficient, online distribution system. Tour Operating activities focus on outbound leisure travel from European and Asian source markets and offer a variety of tailor-made, individual and packaged holidays to end consumers and online & offline travel agencies. Visa Processing Services offers administrative parts of the visa application, and other consular processes.
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