InterContinental Hotels Group (InterContinental Hotels Group) Sloan Ratio % : -0.12% (As of Dec. 2023)

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What is InterContinental Hotels Group Sloan Ratio %?

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.

InterContinental Hotels Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.12%.

As of Dec. 2023, InterContinental Hotels Group has a Sloan Ratio of -0.12%, indicating the company is in the safe zone and there is no funny business with accruals.

InterContinental Hotels Group Sloan Ratio % Historical Data

The historical data trend for InterContinental Hotels Group'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.

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InterContinental Hotels Group Sloan Ratio % Chart

InterContinental Hotels Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

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5.36

-6.67

-7.59

-4.58

-0.12

InterContinental Hotels Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Sloan Ratio %	Get a 7-Day Free Trial															-7.59	-4.33	-4.58	-1.78	-0.12

Competitive Comparison of InterContinental Hotels Group's Sloan Ratio %

For the Lodging subindustry, InterContinental Hotels Group'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.

InterContinental Hotels Group's Sloan Ratio % Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, InterContinental Hotels Group's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where InterContinental Hotels Group's Sloan Ratio % falls into.

InterContinental Hotels Group 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.

InterContinental Hotels Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(750	-	893
	-	-137)	/	4813
	=	-0.12%

InterContinental Hotels Group's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(750	-	893
	-	-137)	/	4813
	=	-0.12%

For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data. InterContinental Hotels Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 459 (Jun. 2023 ) + 291 (Dec. 2023 ) = $750 Mil.
InterContinental Hotels Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 315 (Jun. 2023 ) + 578 (Dec. 2023 ) = $893 Mil.
InterContinental Hotels Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -43 (Jun. 2023 ) + -94 (Dec. 2023 ) = $-137 Mil.

InterContinental Hotels Group (NYSE:IHG) 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.

According to How to Beat the Market with the Sloan Ratio:

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, InterContinental Hotels Group has a Sloan Ratio of -0.12%, indicating the company is in the safe zone and there is no funny business with accruals.

InterContinental Hotels Group Sloan Ratio % Related Terms

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InterContinental Hotels Group (InterContinental Hotels Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » InterContinental Hotels Group PLC (NYSE:IHG) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

ICHGF:USA IHGl:UK IHG:UK IC1B:Germany I1HG34:Brazil

Address

1 Windsor Dials, Arthur Road, Windsor, Berkshire, GBR, SL4 1RS

Website

http://www.ihgplc.com

InterContinental Hotels Group operates 930,000 rooms across 18 brands addressing the midscale through luxury segments, as of Sept. 30, 2023. Holiday Inn and Holiday Inn Express constitute the largest brand, while Hotel Indigo, Even, Hualuxe, Kimpton, and Voco are newer lifestyle brands experiencing strong demand. The company launched a midscale brand, Avid, in summer 2017 and closed on a 51% stake in Regent Hotels in July 2018. It acquired Six Senses in February 2019 and launched another midscale brand, Garner, in 2023. Managed and franchised represent 99% of total rooms. As of Sept. 30, 2023, the Americas represents 56% of total rooms, with greater China accounting for 18%; Europe, Asia, the Middle East, and Africa make up 26%.