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 Dec. 2023, Charter Communications has a Sloan Ratio of 0.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Charter Communications 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 Charter Communications's Sloan Ratio %
For the Telecom Services subindustry, Charter Communications'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.
Charter Communications's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Charter Communications's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Charter Communications's Sloan Ratio % falls into.
Charter Communications 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.
Charter Communications's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Charter Communications's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1021 (Mar. 2023 ) + 1223 (Jun. 2023 ) + 1255 (Sep. 2023 ) + 1058 (Dec. 2023 ) = $4,557 Mil.
Charter Communications's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3323 (Mar. 2023 ) + 3311 (Jun. 2023 ) + 3944 (Sep. 2023 ) + 3855 (Dec. 2023 ) = $14,433 Mil.
Charter Communications's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2739 (Mar. 2023 ) + -2850 (Jun. 2023 ) + -2894 (Sep. 2023 ) + -2644 (Dec. 2023 ) = $-11,127 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.
Charter Communications (NAS:CHTR) 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. 2023, Charter Communications has a Sloan Ratio of 0.85%, indicating the company is in the safe zone and there is no funny business with accruals.
Charter Communications Sloan Ratio % Related Terms
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Charter Communications (Charter Communications) Business Description
Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 56 million U.S. homes and businesses, around 40% of the country. Across this footprint, Charter serves 30 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest U.S. cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (long-term local rights to Los Angeles Lakers games), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1.
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