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.
As of Mar. 2024, Wyndham Hotels & Resorts has a Sloan Ratio of -0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Wyndham Hotels & Resorts Sloan Ratio % Historical Data
* 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 Wyndham Hotels & Resorts's Sloan Ratio %
For the Lodging subindustry, Wyndham Hotels & Resorts'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.
Wyndham Hotels & Resorts's Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Wyndham Hotels & Resorts's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Wyndham Hotels & Resorts's Sloan Ratio % falls into.
Wyndham Hotels & Resorts 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.
Wyndham Hotels & Resorts's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Wyndham Hotels & Resorts's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 70 (Jun. 2023 ) + 103 (Sep. 2023 ) + 49 (Dec. 2023 ) + 16 (Mar. 2024 ) = $238 Mil.
Wyndham Hotels & Resorts's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 83 (Jun. 2023 ) + 77 (Sep. 2023 ) + 123 (Dec. 2023 ) + 76 (Mar. 2024 ) = $359 Mil.
Wyndham Hotels & Resorts's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -10 (Jun. 2023 ) + -31 (Sep. 2023 ) + -16 (Dec. 2023 ) + -24 (Mar. 2024 ) = $-81 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.
Wyndham Hotels & Resorts (NYSE:WH) 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 Mar. 2024, Wyndham Hotels & Resorts has a Sloan Ratio of -0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Wyndham Hotels & Resorts Sloan Ratio % Related Terms
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Wyndham Hotels & Resorts (Wyndham Hotels & Resorts) Business Description
As of Dec. 31, 2022, Wyndham Hotels & Resorts operates 843,000 rooms across more than 20 brands predominantly in the economy and midscale segments. Super 8 is the largest brand, representing around 19% of all rooms, with Days Inn (14%) and Ramada (14%) the next two largest brands. During the past several years, the company has expanded its extended stay/lifestyle brands, which appeal to travelers seeking to experience the local culture of a given location. Wyndham launched a new extended stay economy scale segment concept, ECHO, in the spring of 2022. The United States represents roughly 60% of total rooms. The company closed its La Quinta acquisition in the second quarter of 2018, adding around 90,000 rooms at the time the deal closed.
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