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.
Liberty Broadband's Sloan Ratio for the quarter that ended in Dec. 2023 was 3.34%.
As of Dec. 2023, Liberty Broadband has a Sloan Ratio of 3.34%, indicating the company is in the safe zone and there is no funny business with accruals.
Liberty Broadband Sloan Ratio % Historical Data
The historical data trend for Liberty Broadband'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.
* Premium members only.
Liberty Broadband Annual Data
Trend
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Sloan Ratio %
1.26
-0.38
-19.64
-11.45
3.34
Liberty Broadband Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Sloan Ratio %
-11.45
-8.78
-0.83
2.68
3.34
Competitive Comparison
For the Telecom Services subindustry, Liberty Broadband'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.
Liberty Broadband Sloan Ratio % Distribution
For the Telecommunication Services industry and Communication Services sector, Liberty Broadband's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Liberty Broadband's Sloan Ratio % falls into.
Liberty Broadband 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.
Liberty Broadband's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Liberty Broadband's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 69 (Mar. 2023 ) + 252 (Jun. 2023 ) + 162 (Sep. 2023 ) + 205 (Dec. 2023 ) = $688.0 Mil.
Liberty Broadband's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 41 (Mar. 2023 ) + -96 (Jun. 2023 ) + 9 (Sep. 2023 ) + 62 (Dec. 2023 ) = $16.0 Mil.
Liberty Broadband's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -12 (Mar. 2023 ) + -69 (Jun. 2023 ) + -48 (Sep. 2023 ) + 279 (Dec. 2023 ) = $150.0 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.
Liberty Broadband (NAS:LBRDK) 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, Liberty Broadband has a Sloan Ratio of 3.34%, indicating the company is in the safe zone and there is no funny business with accruals.
Liberty Broadband Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Liberty Broadband's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Liberty Broadband (Liberty Broadband) Business Description
Liberty Broadband Corp serves in the telecommunications industry in the United States. It provides cable services to both residential and small to medium businesses through its fiber, hybrid fiber, and coaxial cable infrastructure. The services provided by the company are residential services which include video services, internet services, voice services, and mobile services, commercial services which include small, and medium business and enterprise solutions, advertising services, and other services which include security and home management. The reportable segments of the company are GCI Holdings, Charter. The firm derives the majority of its revenue from GCI Holdings.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LBRDK has been successfully added to your 