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.
Ubisoft Entertainment's Sloan Ratio for the quarter that ended in Sep. 2023 was 5.63%.
As of Sep. 2023, Ubisoft Entertainment has a Sloan Ratio of 5.63%, indicating the company is in the safe zone and there is no funny business with accruals.
Ubisoft Entertainment Sloan Ratio % Historical Data
The historical data trend for Ubisoft Entertainment'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 Ubisoft Entertainment's Sloan Ratio %
For the Electronic Gaming & Multimedia subindustry, Ubisoft Entertainment'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.
Ubisoft Entertainment's Sloan Ratio % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Ubisoft Entertainment's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Ubisoft Entertainment's Sloan Ratio % falls into.
Ubisoft Entertainment 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.
Ubisoft Entertainment's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Ubisoft Entertainment's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -304.1 (Mar. 2023 ) + -34.3 (Sep. 2023 ) = €-338 Mil.
Ubisoft Entertainment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was -805.9 (Mar. 2023 ) + 218.7 (Sep. 2023 ) = €-587 Mil.
Ubisoft Entertainment's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 464.6 (Mar. 2023 ) + -483.2 (Sep. 2023 ) = €-19 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.
Ubisoft Entertainment (XTER:UEN) 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 Sep. 2023, Ubisoft Entertainment has a Sloan Ratio of 5.63%, indicating the company is in the safe zone and there is no funny business with accruals.
Ubisoft Entertainment Sloan Ratio % Related Terms
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Ubisoft Entertainment (XTER:UEN) Business Description
Founded in 1986 in France by five brothers of the Guillemot family, Ubisoft is one of the largest independent video game publishers. Ubisoft employs a deep pool of developers at studios across the globe. The firm owns a number of well-known franchises, including Assassin's Creed, Far Cry, Tom Clancy's Rainbow Six and Ghost Recon, Rayman, Trials, and Just Dance. The Guillemot family and Tencent collectively own roughly 20% of Ubisoft shares, with the family holding over 20% and Tencent roughly 4% of the voting rights.
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