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Shift4 Payments (Shift4 Payments) Sloan Ratio % : 1.07% (As of Mar. 2024)


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What is Shift4 Payments Sloan Ratio %?

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.

Shift4 Payments's Sloan Ratio for the quarter that ended in Mar. 2024 was 1.07%.

As of Mar. 2024, Shift4 Payments has a Sloan Ratio of 1.07%, indicating the company is in the safe zone and there is no funny business with accruals.


Shift4 Payments Sloan Ratio % Historical Data

The historical data trend for Shift4 Payments'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.

* Premium members only.

Shift4 Payments Sloan Ratio % Chart

Shift4 Payments Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial 1.98 3.39 5.09 12.39 -0.01

Shift4 Payments Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.86 11.12 -5.13 -0.01 1.07

Competitive Comparison of Shift4 Payments's Sloan Ratio %

For the Software - Infrastructure subindustry, Shift4 Payments'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.


Shift4 Payments's Sloan Ratio % Distribution in the Software Industry

For the Software industry and Technology sector, Shift4 Payments's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Shift4 Payments's Sloan Ratio % falls into.



Shift4 Payments 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.

Shift4 Payments's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(86.2-388.3
--301.9)/3387.8
=-0.01%

Shift4 Payments's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2024 )
=(92-365.6
--310.2)/3407.8
=1.07%

Shift4 Payments's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 25.1 (Jun. 2023 ) + 32.6 (Sep. 2023 ) + 13.7 (Dec. 2023 ) + 20.6 (Mar. 2024 ) = $92 Mil.
Shift4 Payments's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 91.9 (Jun. 2023 ) + 111.7 (Sep. 2023 ) + 105.3 (Dec. 2023 ) + 56.7 (Mar. 2024 ) = $366 Mil.
Shift4 Payments's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -76.6 (Jun. 2023 ) + -43.1 (Sep. 2023 ) + -150.8 (Dec. 2023 ) + -39.7 (Mar. 2024 ) = $-310 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.


Shift4 Payments  (NYSE:FOUR) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Shift4 Payments has a Sloan Ratio of 1.07%, indicating the company is in the safe zone and there is no funny business with accruals.


Shift4 Payments Sloan Ratio % Related Terms

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Shift4 Payments (Shift4 Payments) Business Description

Traded in Other Exchanges
Address
2202 North Irving Street, Allentown, PA, USA, 18109
Shift4 Payments Inc is provider of integrated payment processing and technology solutions. The company offers software providers a single integration to an end-to-end payments offering, a powerful gateway and a robust suite of technology solutions (including cloud enablement, business intelligence, analytics, and mobile) to enhance the value of their software suites and simplify payment acceptance. The Shift4 Model is built to serve a range of merchants from small-to-medium-sized businesses to large and complex enterprises across numerous verticals, including lodging, leisure, and food and beverage.
Executives
Sarah Goldsmith-grover director C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Nancy Disman director 57 ROUND TREE DRIVE, MELVILLE NY 11747
David Taylor Lauber officer: Chief Strategy Officer C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Jordan Frankel officer: GC & Corporate Secretary C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Sam Bakhshandehpour director THE NEW HOME COMPANY, 95 ENTERPRISE, SUITE 325, ALISO VIEJO CA 92656
Jared Isaacman director, 10 percent owner, officer: Chairman & CEO C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Karen Roter Davis director C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING ST, ALLENTOWN PA 18109
Searchlight Capital Partners Ii Gp, Llc 10 percent owner 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Bradley Herring officer: CFO C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 16109
Searchlight Ii Gwn Gp, Llc 10 percent owner C/O SEARCHLIGHT CAPITAL PARTNERS, L.P.., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Donald Isaacman director C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Ii Gwn, L.p. 10 percent owner 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Kevin J. Cronic officer: Chief System Architect C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109
Searchlight Capital Ii Pv, L.p. 10 percent owner C/O SEARCHLIGHT CAPITAL PARTNERS, L.P., 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Steven M. Sommers officer: Chief Application Architect C/O SHIFT4 PAYMENTS, INC., 2202 N. IRVING STREET, ALLENTOWN PA 18109

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