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Penske Automotive Group Sloan Ratio %

: -1.43% (As of Sep. 2021)
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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.

Penske Automotive Group's Sloan Ratio for the quarter that ended in Sep. 2021 was -1.43%.

As of Sep. 2021, Penske Automotive Group has a Sloan Ratio of -1.43%, indicating the company is in the safe zone and there is no funny business with accruals.


Penske Automotive Group Sloan Ratio % Historical Data

The historical data trend for Penske Automotive 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.

* Premium members only.

Penske Automotive Group Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.11 8.69 3.50 3.23 -3.94

Penske Automotive Group Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.11 -3.94 -3.15 0.41 -1.43

Competitive Comparison

For the Auto & Truck Dealerships subindustry, Penske Automotive 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.

   

Penske Automotive Group Sloan Ratio % Distribution

For the Vehicles & Parts industry and Consumer Cyclical sector, Penske Automotive Group's Sloan Ratio % distribution charts can be found below:

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



Penske Automotive 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.

Penske Automotive Group's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2020 )-Cash Flow from Operations (A: Dec. 2020 )
-Cash Flow from Investing (A: Dec. 2020 ))/Total Assets (A: Dec. 2020 )
=(543.6-1201.8
--136.5)/13247.2
=-3.94%

Penske Automotive Group's Sloan Ratio for the quarter that ended in Sep. 2021 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM})
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2021 )
=(1076.7-1682.9
--424)/12719.3
=-1.43%

Penske Automotive Group's Net Income for the trailing twelve months (TTM) ended in Sep. 2021 was 200.2 (Dec. 2020 ) + 182.5 (Mar. 2021 ) + 338.9 (Jun. 2021 ) + 355.1 (Sep. 2021 ) = $1,077 Mil.
Penske Automotive Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2021 was 352.1 (Dec. 2020 ) + 239.3 (Mar. 2021 ) + 677.5 (Jun. 2021 ) + 414 (Sep. 2021 ) = $1,683 Mil.
Penske Automotive Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2021 was -47.9 (Dec. 2020 ) + -18.3 (Mar. 2021 ) + -313.3 (Jun. 2021 ) + -44.5 (Sep. 2021 ) = $-424 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.


Penske Automotive Group  (NYSE:PAG) 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 Sep. 2021, Penske Automotive Group has a Sloan Ratio of -1.43%, indicating the company is in the safe zone and there is no funny business with accruals.


Penske Automotive Group Sloan Ratio % Related Terms

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Penske Automotive Group Business Description

Penske Automotive Group logo
Industry
Consumer Cyclical » Vehicles & Parts NAICS : 441110 SIC : 5511
Traded in Other Exchanges
Address
2555 Telegraph Road, Bloomfield Hills, MI, USA, 48302-0954
Penske Automotive Group operates in 22 U.S. states and overseas. It has 143 U.S. light-vehicle franchises including in Puerto Rico as well as 161 franchises overseas, primarily in the United Kingdom. The company is the second- largest U.S.-based dealership in terms of light-vehicle revenue and sells more than 35 brands, with 93% of retail automotive revenue coming from luxury and import names. Other services, in addition to new and used vehicles, are parts and repair and finance and insurance. The firm's Premier Truck Group owns 35 truck dealerships selling mostly Freightliner and Western Star brands, and Penske owns 19 CarShop used-vehicle stores in the U.S. and U.K. The company is based in Michigan and was called United Auto Group before changing its name in 2007.
Executives
Carlson John D. Jr. officer: EVP & CFO 2555 TELEGRAPH RD. BLOOMFIELD HILLS MI 48302
Barr John director 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302-0954
Spradlin Shane M. officer: EVP, Gen. Counsel & Sec. 2555 TELEGRAPH RD. BLOOMFIELD HILLS MI 48302
Penske Roger S director, 10 percent owner, officer: Chair & CEO 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302-0954
Denker Claude H Iii officer: EVP - Human Resources 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Kurnick Robert H Jr director, officer: President 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302-0954
Penske Gregory W director 3534 NORTH PECK ROAD EL MONTE CA 91731
Pierce Sandra E. director 2555 TELEGRAPH RD. BLOOMFIELD HILLS MI 48302
Duerheimer Wolfgang director 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Penske Roger S Jr director 2555 TELEGRAPH ROAD BLOOMFIELD HILLS MI 48302
Mcwaters Kimberly J director 20410 NORTH 19TH AVENUE PHOENIX AZ 85027
Smith Greg C director FORD MOTOR COMPANY 21175 OAKWOOD BLVD DEARBORN MI 48124
Davis Lisa Ann director 2555 TELEGRAPH RD BLOOMFIELD HILLS MI 48302
Eisenson Michael R director C/O CHARLESBANK CAPITAL PARTNERS 600 ATLANTIC AV 28TH FL BOSTON MA 02210
Thompson H Brian director 1950 OLD GALLOWS ROAD SUITE 201 VIENNA VA 22182

Penske Automotive Group Headlines

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