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.
Outfront Media's Sloan Ratio for the quarter that ended in Dec. 2023 was -10.34%.
As of Dec. 2023, Outfront Media has a Sloan Ratio of -10.34%, indicating there is a warning stage of accrual build up.
Outfront Media Sloan Ratio % Historical Data
The historical data trend for Outfront Media'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.
Competitive Comparison of Outfront Media's Sloan Ratio %
For the REIT - Specialty subindustry, Outfront Media'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.
Outfront Media's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Outfront Media's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Outfront Media's Sloan Ratio % falls into.
Outfront Media 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.
Outfront Media's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Outfront Media's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -28.9 (Mar. 2023 ) + -478.9 (Jun. 2023 ) + 17 (Sep. 2023 ) + 60.4 (Dec. 2023 ) = $-430 Mil.
Outfront Media's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 9.4 (Mar. 2023 ) + 78.3 (Jun. 2023 ) + 61.5 (Sep. 2023 ) + 105 (Dec. 2023 ) = $254 Mil.
Outfront Media's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -27.7 (Mar. 2023 ) + -43.8 (Jun. 2023 ) + -21.9 (Sep. 2023 ) + -14.1 (Dec. 2023 ) = $-108 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.
Outfront Media (NYSE:OUT) 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, Outfront Media has a Sloan Ratio of -10.34%, indicating there is a warning stage of accrual build up.
Outfront Media Sloan Ratio % Related Terms
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Outfront Media (Outfront Media) Business Description
Outfront Media Inc is a real estate investment trust involved in the ownership of advertising space on its portfolio of billboards and transit displays. The Company generates revenue in the form of rental income by allowing other companies to advertise on its properties and structures under short-term contracts. Outfront Media segments its operations into the United States and International units. Although it also owns assets in Canada and Latin America, the company derives the vast majority of its revenue from billboard advertising agreements in the U.S. Roughly half of the U.S. division's revenue comes from its displays in the New York City and Los Angeles markets. Outfront Media's major customers include entities within the retail, television, healthcare, and entertainment industries.
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