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.
Altice USA's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.21%.
As of Dec. 2023, Altice USA has a Sloan Ratio of -0.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Altice USA Sloan Ratio % Historical Data
The historical data trend for Altice USA'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 Altice USA's Sloan Ratio %
For the Telecom Services subindustry, Altice USA'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.
Altice USA's Sloan Ratio % Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Altice USA's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Altice USA's Sloan Ratio % falls into.
Altice USA 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.
Altice USA's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Altice USA's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 25.865 (Mar. 2023 ) + 78.3 (Jun. 2023 ) + 66.839 (Sep. 2023 ) + -117.806 (Dec. 2023 ) = $53 Mil.
Altice USA's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 416.846 (Mar. 2023 ) + 438.841 (Jun. 2023 ) + 474.498 (Sep. 2023 ) + 496.213 (Dec. 2023 ) = $1,826 Mil.
Altice USA's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -583.095 (Mar. 2023 ) + -474.825 (Jun. 2023 ) + -353.318 (Sep. 2023 ) + -295.285 (Dec. 2023 ) = $-1,707 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.
Altice USA (NYSE:ATUS) 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, Altice USA has a Sloan Ratio of -0.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Altice USA Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Altice USA's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Altice Europe acquired privately held U.S. cable company Suddenlink in 2015 and Cablevision in 2016. Suddenlink's networks provide television, internet access, and phone services to roughly 3.5 million U.S. homes and businesses located primarily in smaller markets, with major clusters in Texas, West Virginia, Idaho, Arizona, and Louisiana. Cablevision provides comparable services to about 5.5 million homes and business in the New York City metro area. Both regions operate under the Optimum brand name. Altice Europe spun off Altice USA, which includes both the Suddenlink and Cablevision operations, to shareholders in 2018. Altice USA also owns News 12 Networks, which broadcasts local news in New York, i24News, a news operation focused on the Middle East, and Cheddar, a news upstart.
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