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 Mar. 2024, Hilton Worldwide Holdings has a Sloan Ratio of -3.23%, indicating the company is in the safe zone and there is no funny business with accruals.
Hilton Worldwide Holdings 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 Hilton Worldwide Holdings's Sloan Ratio %
For the Lodging subindustry, Hilton Worldwide 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.
Hilton Worldwide Holdings's Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Hilton Worldwide Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hilton Worldwide Holdings's Sloan Ratio % falls into.
Hilton Worldwide 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.
Hilton Worldwide Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Hilton Worldwide Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 411 (Jun. 2023 ) + 377 (Sep. 2023 ) + 147 (Dec. 2023 ) + 265 (Mar. 2024 ) = $1,200 Mil.
Hilton Worldwide Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 464 (Jun. 2023 ) + 687 (Sep. 2023 ) + 465 (Dec. 2023 ) + 346 (Mar. 2024 ) = $1,962 Mil.
Hilton Worldwide Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -69 (Jun. 2023 ) + -74 (Sep. 2023 ) + -77 (Dec. 2023 ) + -27 (Mar. 2024 ) = $-247 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.
Hilton Worldwide Holdings (NYSE:HLT) 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 Mar. 2024, Hilton Worldwide Holdings has a Sloan Ratio of -3.23%, indicating the company is in the safe zone and there is no funny business with accruals.
Hilton Worldwide Holdings Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Hilton Worldwide Holdings's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Hilton Worldwide Holdings (Hilton Worldwide Holdings) Business Description
Hilton Worldwide Holdings operates 1,127,430 rooms across its 20 plus brands addressing the premium economy scale through luxury segments as of Dec. 31, 2022. Hampton and Hilton are the two largest brands by total room count at 28% and 13%, respectively, as of Dec. 31, 2022. Recent brands launched over the last few years include Home2, Curio, Canopy, Spark, Tru, Tempo, and Project H3. Managed and franchised represent the vast majority of adjusted EBITDA, predominantly from the Americas regions.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
HLT has been successfully added to your 