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Twitter (Twitter) Sloan Ratio % : -8.19% (As of Jun. 2022)


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What is Twitter Sloan Ratio %?

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.

Twitter's Sloan Ratio for the quarter that ended in Jun. 2022 was -8.19%.

As of Jun. 2022, Twitter has a Sloan Ratio of -8.19%, indicating the company is in the safe zone and there is no funny business with accruals.


Twitter Sloan Ratio % Historical Data

The historical data trend for Twitter'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.

Twitter Sloan Ratio % Chart

Twitter Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -11.10 18.91 10.06 -4.24 -6.45

Twitter Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Sloan Ratio % Get a 7-Day Free Trial 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 0.29 -13.08 -6.45 -4.29 -8.19

Competitive Comparison of Twitter's Sloan Ratio %

For the Internet Content & Information subindustry, Twitter'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.


Twitter's Sloan Ratio % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Twitter's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Twitter's Sloan Ratio % falls into.



Twitter 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.

Twitter'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 )
=(-221.409-632.689
-52.623)/14059.516
=-6.45%

Twitter's Sloan Ratio for the quarter that ended in Jun. 2022 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2022 )
=(-111.784-16.325
-984.251)/13579.287
=-8.19%

Twitter's Net Income for the trailing twelve months (TTM) ended in Jun. 2022 was -536.757 (Sep. 2021 ) + 181.694 (Dec. 2021 ) + 513.286 (Mar. 2022 ) + -270.007 (Jun. 2022 ) = $-112 Mil.
Twitter's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2022 was 388.98 (Sep. 2021 ) + -528.442 (Dec. 2021 ) + 126.091 (Mar. 2022 ) + 29.696 (Jun. 2022 ) = $16 Mil.
Twitter's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2022 was 93.076 (Sep. 2021 ) + -511.03 (Dec. 2021 ) + 1064.901 (Mar. 2022 ) + 337.304 (Jun. 2022 ) = $984 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.


Twitter  (NYSE:TWTR) 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 Jun. 2022, Twitter has a Sloan Ratio of -8.19%, indicating the company is in the safe zone and there is no funny business with accruals.


Twitter Sloan Ratio % Related Terms

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Twitter (Twitter) Business Description

Traded in Other Exchanges
N/A
Address
1355 Market Street, Suite 900, San Francisco, CA, USA, 94103
Twitter is an open distribution platform for and a conversational platform around short-form text (a maximum of 280 characters), image, and video content. Its users can create different social networks based on their interests, thereby creating an interest graph. Many prominent celebrities and public figures have Twitter accounts. Twitter generates revenue from advertising (90%) and licensing the user data that it compiles (10%).
Executives
Parag Agrawal director, officer: Former Chief Executive Officer C/O TWITTER, INC., 1355 MARKET STREET, SUITE 900, SAN FRANCISCO CA 94103
Vijaya Gadde officer: Former Chief Legal Officer C/O TWITTER INC, 1355 MARKET STREET SUITE 900, SAN FRANCISCO CA 94103
Ned D. Segal officer: Former Chief Financial Officer 1 MARKET PLAZA, STEUART TOWER, SUITE 800, SAN FRANCISCO CA 94105
Jack Dorsey other: Possible member of 10% group C/O TWITTER INC, 1355 MARKET STREET SUITE 900, SAN FRANCISCO CA 94103
Nick V. Caldwell officer: General Manager of Core Tech C/O HUBSPOT, INC., 25 FIRST STREET, CAMBRIDGE MA 02141
Kayvon Beykpour officer: General Manager of Consumer C/O TWITTER, INC., 1355 MARKET STREET, SUITE 900, SAN FRANCISCO CA 94103
Saud H R H Prince Alwaleed Bin Talal Bin Abdulaziz Al other: Possible member of 10% group C/O KINGDOM HOLDING COMPANY, KINGDOM CTR FLOOR 66 P O BOX 2, RIYADH T0 11321
Robert Kaiden officer: Chief Accounting Officer C/O INSPIRATO INCORPORATED, 1544 WAZEE STREET, DENVER CO 80202
Bruce Falck officer: General Manager of Revenue C/O TWITTER, INC., 1355 MARKET STREET, SUITE 900, SAN FRANCISCO CA 94103
Michael Montano officer: Engineering Lead C/O TWITTER, INC., 1355 MARKET STREET, SUITE 900, SAN FRANCISCO CA 94103
Slp V Aggregator Gp, L.l.c. director C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slp V Titus Holdings Ii, L.p. director C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slp V Titus Gp Ii, L.l.c. director C/O SILVER LAKE, 2776 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Slta V (gp), L.l.c. director C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Silver Lake Technology Investors V, L.p. director C/O SILVER LAKE, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025