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.
PENN Entertainment's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.27%.
As of Dec. 2023, PENN Entertainment has a Sloan Ratio of -1.27%, indicating the company is in the safe zone and there is no funny business with accruals.
PENN Entertainment Sloan Ratio % Historical Data
The historical data trend for PENN Entertainment'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 PENN Entertainment's Sloan Ratio %
For the Resorts & Casinos subindustry, PENN Entertainment'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.
PENN Entertainment's Sloan Ratio % Distribution in the Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, PENN Entertainment's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where PENN Entertainment's Sloan Ratio % falls into.
PENN Entertainment 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.
PENN Entertainment's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
PENN Entertainment's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 514.4 (Mar. 2023 ) + 78.4 (Jun. 2023 ) + -724.8 (Sep. 2023 ) + -358.1 (Dec. 2023 ) = $-490 Mil.
PENN Entertainment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 147.7 (Mar. 2023 ) + 176 (Jun. 2023 ) + 217 (Sep. 2023 ) + -84.8 (Dec. 2023 ) = $456 Mil.
PENN Entertainment's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -378.2 (Mar. 2023 ) + -84.7 (Jun. 2023 ) + -123.1 (Sep. 2023 ) + -156.6 (Dec. 2023 ) = $-743 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.
PENN Entertainment (NAS:PENN) 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, PENN Entertainment has a Sloan Ratio of -1.27%, indicating the company is in the safe zone and there is no funny business with accruals.
PENN Entertainment Sloan Ratio % Related Terms
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PENN Entertainment (PENN Entertainment) Business Description
Penn Entertainment's origins date back to its 1972 racetrack opening in Pennsylvania. Today, Penn operates 43 properties across 20 states and 12 brands (such as Hollywood Casino and Ameristar), with land-based casinos representing 90% of total sales in 2022 (10% was from the interactive segment, which includes sports, iGaming, and media revenue). The retail portfolio generates high-30% EBITDAR margins and helps position the company to obtain licenses for the digital wagering markets. Additionally, Penn's media assets, theScore and ESPN (starting with its partnership launch Nov. 14, 2023), provide access to sports betting/iGaming technology and clientele, helping it form a leading digital position.
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