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.
Booking Holdings's Sloan Ratio for the quarter that ended in Dec. 2023 was -18.65%.
As of Dec. 2023, Booking Holdings has a Sloan Ratio of -18.65%, indicating there is a warning stage of accrual build up.
Booking Holdings Sloan Ratio % Historical Data
The historical data trend for Booking Holdings'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 Booking Holdings's Sloan Ratio %
For the Travel Services subindustry, Booking Holdings'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.
Booking Holdings's Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Booking Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Booking Holdings's Sloan Ratio % falls into.
Booking Holdings 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.
Booking Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Booking Holdings's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 266 (Mar. 2023 ) + 1290 (Jun. 2023 ) + 2511 (Sep. 2023 ) + 222 (Dec. 2023 ) = $4,289 Mil.
Booking Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 2889 (Mar. 2023 ) + 1737 (Jun. 2023 ) + 1372 (Sep. 2023 ) + 1346 (Dec. 2023 ) = $7,344 Mil.
Booking Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 1586 (Mar. 2023 ) + -39 (Jun. 2023 ) + -22 (Sep. 2023 ) + -39 (Dec. 2023 ) = $1,486 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.
Booking Holdings (NAS:BKNG) 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, Booking Holdings has a Sloan Ratio of -18.65%, indicating there is a warning stage of accrual build up.
Booking Holdings Sloan Ratio % Related Terms
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Booking Holdings (Booking Holdings) Business Description
Booking is the world's largest online travel agency by sales, offering booking and payment services for hotel and alternative accommodation rooms, airline tickets, rental cars, restaurant reservations, cruises, experiences, and other vacation packages. The company operates a number of branded travel booking sites, including Booking.com, Agoda, OpenTable, and Rentalcars.com, and has expanded into travel media with the acquisitions of Kayak and Momondo. Transaction fees for online bookings account for the bulk of revenue and profits.
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