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.
Shaw Communications's Sloan Ratio for the quarter that ended in Nov. 2022 was 0.30%.
As of Nov. 2022, Shaw Communications has a Sloan Ratio of 0.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Shaw Communications Sloan Ratio % Historical Data
The historical data trend for Shaw Communications'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 Shaw Communications's Sloan Ratio %
For the Telecom Services subindustry, Shaw Communications'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.
Shaw Communications's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Shaw Communications's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Shaw Communications's Sloan Ratio % falls into.
Shaw Communications 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.
Shaw Communications's Sloan Ratio for the fiscal year that ended in Aug. 2022 is calculated as
Shaw Communications's Net Income for the trailing twelve months (TTM) ended in Nov. 2022 was 154.197 (Feb. 2022 ) + 157.866 (May. 2022 ) + 130.835 (Aug. 2022 ) + 124.842 (Nov. 2022 ) = $568 Mil.
Shaw Communications's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2022 was 383.133 (Feb. 2022 ) + 438.603 (May. 2022 ) + 323.605 (Aug. 2022 ) + 252.657 (Nov. 2022 ) = $1,398 Mil.
Shaw Communications's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2022 was -201.4 (Feb. 2022 ) + -197.527 (May. 2022 ) + -243.865 (Aug. 2022 ) + -222.189 (Nov. 2022 ) = $-865 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.
Shaw Communications (NYSE:SJR) 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 Nov. 2022, Shaw Communications has a Sloan Ratio of 0.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Shaw Communications Sloan Ratio % Related Terms
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Shaw Communications (Shaw Communications) Business Description
Shaw Communications is a Canadian cable company that is one of the biggest providers of internet, television, and landline telephone services in British Columbia, Alberta, Saskatchewan, Manitoba, and northern Ontario. In fiscal 2021, more than 75% of Shaw's total revenue resulted from this wireline business. Shaw now also offers wireless service over most of Canada's population footprint after acquiring Wind Mobile in 2016. As a smaller carrier, Shaw has favored bidding status in spectrum auctions, giving it a further boost in enhancing its wireless network. At the 2019 auction, Shaw added significant amounts of 600 MHz spectrum to the 700 MHz spectrum it is currently deploying.
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