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 Mar. 2024, Sphere Entertainment Co has a Sloan Ratio of 3.34%, indicating the company is in the safe zone and there is no funny business with accruals.
Sphere Entertainment Co 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 Sphere Entertainment Co's Sloan Ratio %
For the Entertainment subindustry, Sphere Entertainment Co'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.
Sphere Entertainment Co's Sloan Ratio % Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sphere Entertainment Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sphere Entertainment Co's Sloan Ratio % falls into.
Sphere Entertainment Co 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.
Sphere Entertainment Co's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
Sphere Entertainment Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 536.792 (Jun. 2023 ) + 66.425 (Sep. 2023 ) + -173.248 (Dec. 2023 ) + -47.24 (Mar. 2024 ) = $382.7 Mil.
Sphere Entertainment Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 15.767 (Jun. 2023 ) + -94.641 (Sep. 2023 ) + 46.403 (Dec. 2023 ) + 101.018 (Mar. 2024 ) = $68.5 Mil.
Sphere Entertainment Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 171.561 (Jun. 2023 ) + 66.498 (Sep. 2023 ) + -65.525 (Dec. 2023 ) + -21.213 (Mar. 2024 ) = $151.3 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.
Sphere Entertainment Co (NYSE:SPHR) 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 Mar. 2024, Sphere Entertainment Co has a Sloan Ratio of 3.34%, indicating the company is in the safe zone and there is no funny business with accruals.
Sphere Entertainment Co Sloan Ratio % Related Terms
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Sphere Entertainment Co (Sphere Entertainment Co) Business Description
Sphere Entertainment Co is live entertainment and media company. The firm creates, writes, cast, produce, and tour shows and events. The company's portfolio includes Sphere, a next-generation entertainment medium to the world. The group has three reportable segments which include Entertainment, MSG Networks, and Tao Group Hospitality.
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