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Digital World Acquisition Sloan Ratio %

: 0.00% (As of Mar. 2022)
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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.

Digital World Acquisition's Sloan Ratio for the quarter that ended in Mar. 2022 was 0.00%.

Warning Sign:

When Sloan Ratio (99.66)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Mar. 2022, Digital World Acquisition has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.


Digital World Acquisition Sloan Ratio % Historical Data

The historical data trend for Digital World Acquisition'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.

Digital World Acquisition Annual Data
Trend Dec20 Dec21
Sloan Ratio %
- 99.66

Digital World Acquisition Quarterly Data
Mar21 Jun21 Sep21 Dec21 Mar22
Sloan Ratio % - - - - -

Competitive Comparison

For the Shell Companies subindustry, Digital World Acquisition'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.

   

Digital World Acquisition Sloan Ratio % Distribution

For the Diversified Financial Services industry and Financial Services sector, Digital World Acquisition's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Digital World Acquisition's Sloan Ratio % falls into.



Digital World Acquisition 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.

Digital World Acquisition's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2021 )-Cash Flow from Operations (A: Dec. 2021 )
-Cash Flow from Investing (A: Dec. 2021 ))/Total Assets (A: Dec. 2021 )
=(-1.384--1.114
--293.25)/293.991
=99.66%

Digital World Acquisition's Sloan Ratio for the quarter that ended in Mar. 2022 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM})
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2022 )
=(-3.268--1.7
-0)/293.675
=-0.53%

Digital World Acquisition's Net Income for the trailing twelve months (TTM) ended in Mar. 2022 was -0.001 (Jun. 2021 ) + -0.159 (Sep. 2021 ) + -1.224 (Dec. 2021 ) + -1.884 (Mar. 2022 ) = $-3.27 Mil.
Digital World Acquisition's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2022 was -0.001 (Jun. 2021 ) + 0.054 (Sep. 2021 ) + -1.167 (Dec. 2021 ) + -0.586 (Mar. 2022 ) = $-1.70 Mil.
Digital World Acquisition's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2022 was 0 (Jun. 2021 ) + 0 (Sep. 2021 ) + 0 (Dec. 2021 ) + 0 (Mar. 2022 ) = $0.00 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.


Digital World Acquisition  (NAS:DWAC) 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 Mar. 2022, Digital World Acquisition has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.


Digital World Acquisition Sloan Ratio % Related Terms

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Digital World Acquisition Business Description

Digital World Acquisition logo
Industry
Traded in Other Exchanges
Address
78 SW 7th Street, Miami, FL, USA, 33130
Website
Digital World Acquisition Corp is a blank check company.
Executives
Barclays Plc 10 percent owner 1 CHURCHILL PLACE CANARY WHARF LONDON X0 E14 5HP
Orlando Patrick Francis director, 10 percent owner, officer: CEO and Chairman 212 E 48TH STREET - PHB NEW YORK NY 10017
Shaner Justin director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Swider Eric director 2000 S BAYSHORE DR UNIT 20 MIAMI FL 33133
Veloso Rodrigo director 78 SW 7TH STREET MIAMI FL 33130
Garelick Bruce J. director 78 SW 7TH STREET MIAMI FL 33130
Montie Jacobson director 78 SW 7TH STREET MIAMI FL 33130
Orleans-braganza Luiz officer: Chief Financial Officer 78 SW 7TH STREET MIAMI FL 33130
Arc Global Investments Ii Llc 10 percent owner 78 SW 7TH STREET MIAMI FL 33130

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