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.
Restaurant Group (The)'s Sloan Ratio for the quarter that ended in Jun. 2023 was -6.23%.
As of Jun. 2023, Restaurant Group (The) has a Sloan Ratio of -6.23%, indicating the company is in the safe zone and there is no funny business with accruals.
Restaurant Group (The) 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 Restaurant Group (The)'s Sloan Ratio %
For the Restaurants subindustry, Restaurant Group (The)'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.
Restaurant Group (The)'s Sloan Ratio % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Restaurant Group (The)'s Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Restaurant Group (The)'s Sloan Ratio % falls into.
Restaurant Group (The) 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.
Restaurant Group (The)'s Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Restaurant Group (The)'s Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was -42.4 (Dec. 2022 ) + -1.5 (Jun. 2023 ) = £-43.9 Mil.
Restaurant Group (The)'s Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 51.4 (Dec. 2022 ) + 46.7 (Jun. 2023 ) = £98.1 Mil.
Restaurant Group (The)'s Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was -44.1 (Dec. 2022 ) + -24.7 (Jun. 2023 ) = £-68.8 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.
Restaurant Group (The) (LSE:RTN) 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 Jun. 2023, Restaurant Group (The) has a Sloan Ratio of -6.23%, indicating the company is in the safe zone and there is no funny business with accruals.
Restaurant Group (The) Sloan Ratio % Related Terms
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Restaurant Group (The) (LSE:RTN) Business Description
Restaurant Group (The) PLC operates more than 400 restaurants and pubs under a variety of brand names and concepts, including Frankie and Benny's (American and Italian food), Chiquito (Mexican food), Coast to Coast (American food), Brunning & Price (traditional British pub), and Garfunkel's (British cafe). The group trades in four segments Wagamama, Pubs, Leisure, and Concessions. Nearly all of the company's restaurants are in the United Kingdom. The Group also operates Pub restaurants and a Concessions business which trades principally at UK airports.
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