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.
Cedar Fair LP's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.86%.
As of Dec. 2023, Cedar Fair LP has a Sloan Ratio of 0.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Cedar Fair LP Sloan Ratio % Historical Data
The historical data trend for Cedar Fair LP'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 Cedar Fair LP's Sloan Ratio %
For the Leisure subindustry, Cedar Fair LP'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.
Cedar Fair LP's Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Cedar Fair LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cedar Fair LP's Sloan Ratio % falls into.
Cedar Fair LP 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.
Cedar Fair LP's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Cedar Fair LP's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -134.546 (Mar. 2023 ) + 53.564 (Jun. 2023 ) + 215.494 (Sep. 2023 ) + -9.953 (Dec. 2023 ) = $125 Mil.
Cedar Fair LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -107.143 (Mar. 2023 ) + 120.278 (Jun. 2023 ) + 316.883 (Sep. 2023 ) + -4.343 (Dec. 2023 ) = $326 Mil.
Cedar Fair LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -54.697 (Mar. 2023 ) + -69.797 (Jun. 2023 ) + -45.085 (Sep. 2023 ) + -50.843 (Dec. 2023 ) = $-220 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.
Cedar Fair LP (NYSE:FUN) 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, Cedar Fair LP has a Sloan Ratio of 0.86%, indicating the company is in the safe zone and there is no funny business with accruals.
Cedar Fair LP Sloan Ratio % Related Terms
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Cedar Fair LP (Cedar Fair LP) Business Description
Cedar Fair LP operates amusement park-resorts located in various states across USA and Canada. All their parks have facilities for people from all age groups as well as exciting rides and attractions. The Partnership's portfolio of parks includes Cedar Point, Kings Island, Canada's Wonderland, Dorney Park and the Wildwater Kingdom, Valleyfair, Michigan's Adventure, Kings Dominion, Carowinds, Worlds of Fun, Knott's Berry Farm, and California's Great America. Other than these parks, the partnership also holds a contract to operate a few other parks. Revenues are obtained from amounts paid to gain admission to parks including parking fees, extra-charge attractions, and others.
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