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.
GEN Restaurant Group's Sloan Ratio for the quarter that ended in Mar. 2024 was -4.50%.
As of Mar. 2024, GEN Restaurant Group has a Sloan Ratio of -4.50%, indicating the company is in the safe zone and there is no funny business with accruals.
GEN Restaurant Group Sloan Ratio % Historical Data
The historical data trend for GEN Restaurant Group'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 GEN Restaurant Group's Sloan Ratio %
For the Restaurants subindustry, GEN Restaurant Group'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.
GEN Restaurant Group's Sloan Ratio % Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, GEN Restaurant Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where GEN Restaurant Group's Sloan Ratio % falls into.
GEN Restaurant Group 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.
GEN Restaurant Group's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
GEN Restaurant Group's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 3.96 (Jun. 2023 ) + 0.337 (Sep. 2023 ) + -0.025 (Dec. 2023 ) + 0.496 (Mar. 2024 ) = $4.8 Mil.
GEN Restaurant Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 7.758 (Jun. 2023 ) + 2.938 (Sep. 2023 ) + 8.678 (Dec. 2023 ) + 3.514 (Mar. 2024 ) = $22.9 Mil.
GEN Restaurant Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 10.913 (Jun. 2023 ) + -4.617 (Sep. 2023 ) + -7.695 (Dec. 2023 ) + -7.076 (Mar. 2024 ) = $-8.5 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.
GEN Restaurant Group (NAS:GENK) 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, GEN Restaurant Group has a Sloan Ratio of -4.50%, indicating the company is in the safe zone and there is no funny business with accruals.
GEN Restaurant Group Sloan Ratio % Related Terms
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GEN Restaurant Group (GEN Restaurant Group) Business Description
GEN Restaurant Group Inc is engaged in GEN Korean BBQ which is one of the largest Asian casual dining restaurants. It offers an extensive menu of traditional Korean and Korean-American food, including high-quality meats, poultry, seafood and mixed vegetables, all at a superior value. Its restaurants have modern decor, lively Korean pop music playing in the background and embedded grills in the center of each table. Its food is served family style and requires guests to share and coordinate their cooking responsibilities, which fosters more meaningful interaction than traditional casual dining. The company believes in its unique culinary experience appeals to a vast segment of the population, particularly Millennials and Gen Z.
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