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, Galadari Hotels (Lanka) has a Sloan Ratio of 0.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Galadari Hotels (Lanka) 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 Galadari Hotels (Lanka)'s Sloan Ratio %
For the Lodging subindustry, Galadari Hotels (Lanka)'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.
Galadari Hotels (Lanka)'s Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Galadari Hotels (Lanka)'s Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Galadari Hotels (Lanka)'s Sloan Ratio % falls into.
Galadari Hotels (Lanka) 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.
Galadari Hotels (Lanka)'s Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
Galadari Hotels (Lanka)'s Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 37.478 (Mar. 2023 ) + -33.013 (Jun. 2023 ) + 61.425 (Sep. 2023 ) + -13.468 (Mar. 2024 ) = රු52 Mil.
Galadari Hotels (Lanka)'s Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -81.094 (Mar. 2023 ) + -188.151 (Jun. 2023 ) + 120.718 (Sep. 2023 ) + -31.971 (Mar. 2024 ) = රු-180 Mil.
Galadari Hotels (Lanka)'s Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 55.829 (Mar. 2023 ) + -72.955 (Jun. 2023 ) + 249.724 (Sep. 2023 ) + -25.084 (Mar. 2024 ) = රු208 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.
Galadari Hotels (Lanka) (COL:GHLL.N0000) 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, Galadari Hotels (Lanka) has a Sloan Ratio of 0.22%, indicating the company is in the safe zone and there is no funny business with accruals.
Galadari Hotels (Lanka) Sloan Ratio % Related Terms
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Galadari Hotels (Lanka) (COL:GHLL.N0000) Business Description
Galadari Hotels (Lanka) PLC is involved in the lodging business sector. The principal activity of the company is hoteliering. In terms of revenue, the organization generates income from the sale of rooms and sale of food and beverages. The Food and Beverage sales generate maximum revenue for the company. The hotel provides its services for dining, wedding, accommodation, and meetings. Its service only caters to the Sri Lankan market.
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