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 Dec. 2023, Red Robin Gourmet Burgers has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Red Robin Gourmet Burgers 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 Red Robin Gourmet Burgers's Sloan Ratio %
For the Restaurants subindustry, Red Robin Gourmet Burgers'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.
Red Robin Gourmet Burgers's Sloan Ratio % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Red Robin Gourmet Burgers's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Red Robin Gourmet Burgers's Sloan Ratio % falls into.
Red Robin Gourmet Burgers 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.
Red Robin Gourmet Burgers's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Red Robin Gourmet Burgers's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -44.685 (Dec. 2022 ) + -3.1 (Apr. 2023 ) + -8.161 (Sep. 2023 ) + -13.732 (Dec. 2023 ) = $-70 Mil.
Red Robin Gourmet Burgers's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -3.268 (Dec. 2022 ) + 17.342 (Apr. 2023 ) + -0.864 (Sep. 2023 ) + -18.518 (Dec. 2023 ) = $-5 Mil.
Red Robin Gourmet Burgers's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -11.271 (Dec. 2022 ) + -16.084 (Apr. 2023 ) + 19.09 (Sep. 2023 ) + -10.766 (Dec. 2023 ) = $-19 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.
Red Robin Gourmet Burgers (NAS:RRGB) 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 Dec. 2023, Red Robin Gourmet Burgers has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Red Robin Gourmet Burgers Sloan Ratio % Related Terms
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Red Robin Gourmet Burgers (Red Robin Gourmet Burgers) Business Description
Red Robin Gourmet Burgers Inc is a restaurant operator. The company develops, operates, and franchises casual-dining restaurants and fast-casual restaurants in North America. Its brands are Red Robin, Red Robin Gourmet Burgers, Red Robin America's Gourmet Burgers and Spirits, Red Robin Burger Works, YUMMM, Red Robin Gourmet Burgers and Brews, and Red Robin Royalty names and logos. The company's revenue consists of sales from restaurant operations, gift card breakage, franchise royalties and fees, and other miscellaneous revenue.
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