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.
Playtika Holding's Sloan Ratio for the quarter that ended in Dec. 2024 was 12.48%.
As of Dec. 2024, Playtika Holding has a Sloan Ratio of 12.48%, indicating there is a warning stage of accrual build up.
Playtika Holding Sloan Ratio % Historical Data
The historical data trend for Playtika Holding'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 Playtika Holding's Sloan Ratio %
For the Electronic Gaming & Multimedia subindustry, Playtika Holding'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.
Playtika Holding's Sloan Ratio % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Playtika Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Playtika Holding's Sloan Ratio % falls into.
Playtika Holding 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.
Playtika Holding's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Playtika Holding's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 53 (Mar. 2024 ) + 86.6 (Jun. 2024 ) + 39.3 (Sep. 2024 ) + -16.7 (Dec. 2024 ) = $162 Mil.
Playtika Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 29.6 (Mar. 2024 ) + 150.5 (Jun. 2024 ) + 156.9 (Sep. 2024 ) + 153.1 (Dec. 2024 ) = $490 Mil.
Playtika Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -35.9 (Mar. 2024 ) + -413.2 (Jun. 2024 ) + 323.6 (Sep. 2024 ) + -656.6 (Dec. 2024 ) = $-782 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.
Playtika Holding (NAS:PLTK) 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, Playtika Holding has a Sloan Ratio of 12.48%, indicating there is a warning stage of accrual build up.
Playtika Holding Sloan Ratio % Related Terms
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Playtika Holding Corp is primarily engaged in developing mobile games. Some of its games include Board Kings, House of Fun, Poker Heat, Slotomania, and Bingo Blitz. The company has built live game operations services and a proprietary technology platform to support its portfolio of games. It primarily derives revenue from the sale of virtual items associated with online games. Geographically, the group has a business presence in the USA, EMEA, APAC and Other regions of which key revenue is derived from the USA. It offers both Mobile and Web-based platforms.
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