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.
Live Nation Entertainment's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.59%.
As of Dec. 2023, Live Nation Entertainment has a Sloan Ratio of -0.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Live Nation Entertainment Sloan Ratio % Historical Data
The historical data trend for Live Nation Entertainment'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.
For the Entertainment subindustry, Live Nation Entertainment'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.
Live Nation Entertainment Sloan Ratio % Distribution
For the Media - Diversified industry and Communication Services sector, Live Nation Entertainment's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Live Nation Entertainment's Sloan Ratio % falls into.
Live Nation Entertainment 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.
Live Nation Entertainment's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Live Nation Entertainment's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -3.169 (Mar. 2023 ) + 293.682 (Jun. 2023 ) + 483.495 (Sep. 2023 ) + -210.728 (Dec. 2023 ) = $563 Mil.
Live Nation Entertainment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1155.848 (Mar. 2023 ) + 491.001 (Jun. 2023 ) + -884.408 (Sep. 2023 ) + 608.353 (Dec. 2023 ) = $1,371 Mil.
Live Nation Entertainment's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -59.789 (Mar. 2023 ) + -239.417 (Jun. 2023 ) + -164.758 (Sep. 2023 ) + -231.841 (Dec. 2023 ) = $-696 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.
Live Nation Entertainment (NYSE:LYV) 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, Live Nation Entertainment has a Sloan Ratio of -0.59%, indicating the company is in the safe zone and there is no funny business with accruals.
Live Nation Entertainment Sloan Ratio % Related Terms
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Live Nation Entertainment (Live Nation Entertainment) Business Description
Live Nation is the largest live entertainment firm in the world with over 670 million fans served in 48 countries in 2022 by the company's concert and ticketing platforms. Via either owning, operating, or holding exclusive booking rights, Live Nation controls over 338 venues including the House of Blues. Live Nation also owns one of the largest ticketing services, Ticketmaster, which sold over 550 million tickets for over 12,000 clients in 2022. Its artist management agencies have over 400 clients. This large live entertainment footprint helped Live Nation become one of the largest advertising and sponsorship platforms aimed at music fans. Liberty Media owns 31% of Live Nation, held under its Sirius XM tracking stock. Liberty plans to spin off its stake into a dedicated tracking stock.
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