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.
* 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 Angel Oak Mortgage REIT's Sloan Ratio %
For the REIT - Mortgage subindustry, Angel Oak Mortgage REIT'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.
Angel Oak Mortgage REIT's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Angel Oak Mortgage REIT's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Angel Oak Mortgage REIT's Sloan Ratio % falls into.
Angel Oak Mortgage REIT 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.
Angel Oak Mortgage REIT's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Angel Oak Mortgage REIT's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -3.688 (Jun. 2023 ) + 8.273 (Sep. 2023 ) + 28.599 (Dec. 2023 ) + 12.874 (Mar. 2024 ) = $46.06 Mil.
Angel Oak Mortgage REIT's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 3.954 (Jun. 2023 ) + 58.527 (Sep. 2023 ) + -32.683 (Dec. 2023 ) + 40.222 (Mar. 2024 ) = $70.02 Mil.
Angel Oak Mortgage REIT's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 114.344 (Jun. 2023 ) + 141.998 (Sep. 2023 ) + -29.439 (Dec. 2023 ) + -4.819 (Mar. 2024 ) = $222.08 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.
Angel Oak Mortgage REIT (NYSE:AOMR) 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, Angel Oak Mortgage REIT has a Sloan Ratio of -10.93%, indicating there is a warning stage of accrual build up.
Angel Oak Mortgage REIT Sloan Ratio % Related Terms
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Angel Oak Mortgage REIT (Angel Oak Mortgage REIT) Business Description
Angel Oak Mortgage REIT Inc is a real estate finance company focused on acquiring and investing in the first lien non-QM loans and other mortgage-related assets in the U.S. mortgage market. Its objective is to generate attractive risk-adjusted returns for its stockholders, through cash distributions and capital appreciation, across interest rates and credit cycles.
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