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.
Loyalty Ventures's Sloan Ratio for the quarter that ended in Sep. 2022 was -31.16%.
As of Sep. 2022, Loyalty Ventures has a Sloan Ratio of -31.16%, indicating there is a warning stage of accrual build up.
Loyalty Ventures Sloan Ratio % Historical Data
The historical data trend for Loyalty Ventures'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 Loyalty Ventures's Sloan Ratio %
For the Airports & Air Services subindustry, Loyalty Ventures'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.
Loyalty Ventures's Sloan Ratio % Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Loyalty Ventures's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Loyalty Ventures's Sloan Ratio % falls into.
Loyalty Ventures 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.
Loyalty Ventures's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
Loyalty Ventures's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was -55.78 (Dec. 2021 ) + 1.018 (Mar. 2022 ) + -441.9 (Jun. 2022 ) + -0.125 (Sep. 2022 ) = $-496.8 Mil.
Loyalty Ventures's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2022 was 65.851 (Dec. 2021 ) + -28.718 (Mar. 2022 ) + -13.332 (Jun. 2022 ) + -9.504 (Sep. 2022 ) = $14.3 Mil.
Loyalty Ventures's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2022 was -9.688 (Dec. 2021 ) + -12.022 (Mar. 2022 ) + 14.321 (Jun. 2022 ) + -7.922 (Sep. 2022 ) = $-15.3 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.
Loyalty Ventures (OTCPK:LYLTQ) 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 Sep. 2022, Loyalty Ventures has a Sloan Ratio of -31.16%, indicating there is a warning stage of accrual build up.
Loyalty Ventures Sloan Ratio % Related Terms
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Loyalty Ventures (Loyalty Ventures) Business Description
7500 Dallas Parkway, Suite 700, Plano, TX, USA, 75024
Website
Loyalty Ventures Inc provides coalition and campaign-based loyalty solutions through the Canadian AIR MILES Reward Program and BrandLoyalty Group B.V. It owns and operates the AIR MILES Reward Program, and Netherlands-based BrandLoyalty, a provider of purpose-driven, tailor-made campaign-based loyalty solutions for grocers and other high-frequency retailers. The AIR MILES Reward Program is a full-service outsourced coalition loyalty program for its sponsors who pay a fee per AIR MILES reward mile issued, in return for which the AIR MILES Reward Program provides all marketing, customer service, rewards and redemption management. BrandLoyalty designs, implements, conducts and evaluates and tailor-made loyalty programs for high frequency retailers worldwide.
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