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.
Kona Grill's Sloan Ratio for the quarter that ended in Dec. 2018 was -53.65%.
As of Dec. 2018, Kona Grill has a Sloan Ratio of -53.65%, indicating earnings are more likely to be made up of accruals.
Kona Grill Sloan Ratio % Historical Data
The historical data trend for Kona Grill'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 Kona Grill's Sloan Ratio %
For the Restaurants subindustry, Kona Grill'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.
Kona Grill's Sloan Ratio % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Kona Grill's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kona Grill's Sloan Ratio % falls into.
Kona Grill 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.
Kona Grill's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
Kona Grill's Net Income for the trailing twelve months (TTM) ended in Dec. 2018 was -2.46 (Mar. 2018 ) + -1 (Jun. 2018 ) + -5.114 (Sep. 2018 ) + -23.394 (Dec. 2018 ) = $-32.0 Mil.
Kona Grill's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2018 was -0.542 (Mar. 2018 ) + 0.324 (Jun. 2018 ) + -0.65 (Sep. 2018 ) + -0.76 (Dec. 2018 ) = $-1.6 Mil.
Kona Grill's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2018 was -0.379 (Mar. 2018 ) + -0.302 (Jun. 2018 ) + -0.596 (Sep. 2018 ) + -0.299 (Dec. 2018 ) = $-1.6 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.
Kona Grill (OTCPK:KONA) 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. 2018, Kona Grill has a Sloan Ratio of -53.65%, indicating earnings are more likely to be made up of accruals.
Kona Grill Sloan Ratio % Related Terms
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Kona Grill Inc owns and operates casual restaurants under the name Kona Grill in the United States. Its restaurants offer freshly prepared food, contemporary American favorites, sushi and specialty cocktails. It also provides full-service bar offering a broad assortment of wines, specialty cocktails, and beers. The menu features a selection of appetizers, salads, soups, flatbreads, sandwiches, noodles, seafood, signature entrees, and desserts. The Other favorites include Miso-Sake Sea Bass served with shrimp and pork fried rice and a seasonal vegetable and Pan-Seared Ahi served with steamed white rice, baby bok choy, and a sweet chilli sauce. It also offers an assortment of sushi that includes traditional favorites as well as distinctive specialty sushi and sashimi items.
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