OTG (Otg Exp) Sloan Ratio %: 13.01% (As of Dec. 2014)

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What is Otg Exp Sloan Ratio %?

Otg Exp OTG Sloan Ratio % is 13.01% as of Dec. 2014.

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.

Otg Exp's Sloan Ratio for the quarter that ended in Dec. 2014 was 13.01%.

As of Dec. 2014, Otg Exp has a Sloan Ratio of 13.01%, indicating there is a warning stage of accrual build up.


Otg Exp  (NAS:OTG) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2014, Otg Exp has a Sloan Ratio of 13.01%, indicating there is a warning stage of accrual build up.


Otg Exp Sloan Ratio % Related Terms


Otg Exp Sloan Ratio % Historical Data

* Premium members only.

The historical data trend for Otg Exp'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.

Otg Exp Sloan Ratio % Chart

Otg Exp Annual Data
Trend Dec13 Dec14
Sloan Ratio %
0.58 13.01

Otg Exp Semi-Annual Data
Dec13 Dec14
Sloan Ratio % 0.00 13.01

OTG vs IRGTQ, CDIF, STRZ: Sloan Ratio % Comparison

For the Restaurants subindustry, Otg Exp'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.


Otg Exp Sloan Ratio % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Otg Exp's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Otg Exp's Sloan Ratio % falls into.



Otg Exp 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.

Otg Exp's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2014 )-Cash Flow from Operations (A: Dec. 2014 )
-Cash Flow from Investing (A: Dec. 2014 ))/Total Assets (A: Dec. 2014 )
=(-46.659--6.536
--76.091)/276.452
=13.01%

Otg Exp's Sloan Ratio for the quarter that ended in Dec. 2014 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2014 )
=(-
-)/
=%

Otg Exp does not have enough years/quarters to calculate the Net Income, Cash Flow from Investing, and Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2014.

* 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.

Frequently Asked Questions Learn more about Sloan Ratio % →
What does a Sloan Ratio % of 13.01% mean?
Otg Exp (OTG) has a Sloan Ratio % of 13.01% as of Dec. 2014. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Otg Exp and its competitors.
Is Otg Exp's Sloan Ratio % too high?
Otg Exp's current Sloan Ratio % is 13.01%.
How does Otg Exp's Sloan Ratio % compare to IRGTQ and CDIF?
Otg Exp's Sloan Ratio % of 13.01% can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Restaurants company?
A good Sloan Ratio % depends on the Restaurants industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Otg Exp and its competitors. Otg Exp's current Sloan Ratio % is 13.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otg Exp stock overvalued right now?
Otg Exp (OTG) has a current Sloan Ratio % of 13.01%. The current Sloan Ratio % is 13.01%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Otg Exp (OTG), the current Sloan Ratio % is 13.01% as of Dec. 2014. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Otg Exp Business Description

Otg Exp Inc was incorporated on October 27, 2015 in Delaware. It is a travel restaurateur with operations in North America with more than 220 locations in 23 terminals across 10 airports. The Company designs, develops, operates and manages the terminal concessions programs, which refers to the programs where it either operates all of the F&B concessions or F&B and N&G concessions or have management authority over the concession program or terminal. The Company operates in the United States and Canada. It has relationships with manufacturers that deliver products directly to its concession locations. OTG's customers are comprised of two distinct groups. The first group includes airlines, such as United, Delta and JetBlue, airport operators and concession program managers. The other commercial enterprises include car rental companies, hotel chains and online shopping sites. The second group consists of the airport users, which include passengers, airline and airport employees. It competes with concession program companies, such as HMSHost Corporation, SSP Group and Hudson Group, as well as other regional and local concessionaires. The Company is subject to federal, state and local government regulations, including those relating to, among others, public health and safety, zoning and fire codes. Failure to obtain or retain food service, health permit or other licenses and approvals would adversely affect its operations.