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.
Party City Holdco's Sloan Ratio for the quarter that ended in Sep. 2022 was 0.37%.
As of Sep. 2022, Party City Holdco has a Sloan Ratio of 0.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Party City Holdco Sloan Ratio % Historical Data
The historical data trend for Party City Holdco'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 Party City Holdco's Sloan Ratio %
For the Specialty Retail subindustry, Party City Holdco'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.
Party City Holdco's Sloan Ratio % Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Party City Holdco's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Party City Holdco's Sloan Ratio % falls into.
Party City Holdco 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.
Party City Holdco's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
Party City Holdco's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was -19.486 (Dec. 2021 ) + -26.889 (Mar. 2022 ) + 162.173 (Jun. 2022 ) + -372.992 (Sep. 2022 ) = $-257 Mil.
Party City Holdco's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2022 was 125.486 (Dec. 2021 ) + -116.825 (Mar. 2022 ) + 17.692 (Jun. 2022 ) + -187.268 (Sep. 2022 ) = $-161 Mil.
Party City Holdco's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2022 was -32.338 (Dec. 2021 ) + -17.017 (Mar. 2022 ) + -32.462 (Jun. 2022 ) + -25.037 (Sep. 2022 ) = $-107 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.
Party City Holdco (OTCPK:PRTYQ) 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, Party City Holdco has a Sloan Ratio of 0.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Party City Holdco Sloan Ratio % Related Terms
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Party City Holdco (Party City Holdco) Business Description
Party City Holdco Inc is a party goods retailer in North America that operates owned and franchised locations in the us, Canada, and Puerto Rico. Party City also sells internationally in countries like the UK, France, Germany, and Australia, among others. The company has two primary reporting segments: retail and wholesale. The retail operations sell through Anagram, Amscan, Designware, Costumes USA, and other party suppliers, such as Party City, Halloween City, and PartyCity.com. The wholesale segment sells party goods such as paper and plastic tableware, accessories and novelties, balloons, stationery, and gift items for all occasions. These products are sold by franchise stores, mass merchants, independent card and gift shops, dollar stores, and other retailers and global distributors.
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