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.
Wheels Up Experience's Sloan Ratio for the quarter that ended in Dec. 2024 was -18.57%.
As of Dec. 2024, Wheels Up Experience has a Sloan Ratio of -18.57%, indicating there is a warning stage of accrual build up.
Wheels Up Experience Sloan Ratio % Historical Data
The historical data trend for Wheels Up Experience'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 Wheels Up Experience's Sloan Ratio %
For the Airports & Air Services subindustry, Wheels Up Experience'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.
Wheels Up Experience's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Wheels Up Experience's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Wheels Up Experience's Sloan Ratio % falls into.
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.
Wheels Up Experience's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as
Wheels Up Experience's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -97.393 (Mar. 2024 ) + -96.973 (Jun. 2024 ) + -57.731 (Sep. 2024 ) + -87.538 (Dec. 2024 ) = $-339.6 Mil. Wheels Up Experience's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -73.794 (Mar. 2024 ) + -26.989 (Jun. 2024 ) + -15.031 (Sep. 2024 ) + 37.926 (Dec. 2024 ) = $-77.9 Mil. Wheels Up Experience's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 19.603 (Mar. 2024 ) + 4.49 (Jun. 2024 ) + 1.965 (Sep. 2024 ) + -72.739 (Dec. 2024 ) = $-46.7 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.
Wheels Up Experience (NYSE:UP) 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, Wheels Up Experience has a Sloan Ratio of -18.57%, indicating there is a warning stage of accrual build up.
Wheels Up Experience Sloan Ratio % Related Terms
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Wheels Up Experience Inc is a provider of on-demand private aviation in the United States. It is pioneering data and technology-driven solutions that connect consumers to safety-vetted and verified private aircraft. It connects private flyers to aircraft, and one another, through an open platform that enables life's most important experiences. Its offering is delivered through a mix of programmatic and charter options that strategically utilize its owned and leased aircraft fleet and an "asset-light" charter model to deliver a greater range of global travel alternatives. The company operates in a single operating and reportable segment, private aviation services. Geographically the company generates the majority of its revenue from the United States.
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