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.
Roblox's Sloan Ratio for the quarter that ended in Dec. 2023 was 19.70%.
As of Dec. 2023, Roblox has a Sloan Ratio of 19.70%, indicating there is a warning stage of accrual build up.
Roblox Sloan Ratio % Historical Data
The historical data trend for Roblox'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 Electronic Gaming & Multimedia subindustry, Roblox'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.
Roblox's Sloan Ratio % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Roblox's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Roblox's Sloan Ratio % falls into.
Roblox 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.
Roblox's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Roblox's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -268.313 (Mar. 2023 ) + -282.777 (Jun. 2023 ) + -277.158 (Sep. 2023 ) + -323.698 (Dec. 2023 ) = $-1,152 Mil.
Roblox's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 173.781 (Mar. 2023 ) + 28.39 (Jun. 2023 ) + 112.704 (Sep. 2023 ) + 143.305 (Dec. 2023 ) = $458 Mil.
Roblox's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2347.78 (Mar. 2023 ) + -357.465 (Jun. 2023 ) + -68.719 (Sep. 2023 ) + -51.135 (Dec. 2023 ) = $-2,825 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.
Roblox (NYSE:RBLX) 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, Roblox has a Sloan Ratio of 19.70%, indicating there is a warning stage of accrual build up.
Roblox Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Roblox's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Roblox operates an online video game platform that lets young gamers create, develop, and monetize games (or "experiences") for other players. The firm effectively offers its developers a hybrid of a game engine, publishing platform, online hosting and services, marketplace with payment processing, and social network. The platform is a closed garden that Roblox controls, earning revenue in multiple places while benefiting from outsourced game development. Unlike traditional video game publishers, Roblox is more focused on the creation of new tools and monetization techniques for its developers then creating new games or franchises.
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