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, COPT Defense Properties has a Sloan Ratio of -1.76%, indicating the company is in the safe zone and there is no funny business with accruals.
COPT Defense Properties 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 COPT Defense Properties's Sloan Ratio %
For the REIT - Office subindustry, COPT Defense Properties'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.
COPT Defense Properties's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, COPT Defense Properties's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where COPT Defense Properties's Sloan Ratio % falls into.
COPT Defense Properties 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.
COPT Defense Properties's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
COPT Defense Properties's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 30.287 (Jun. 2023 ) + -216.187 (Sep. 2023 ) + 33.652 (Dec. 2023 ) + 32.609 (Mar. 2024 ) = $-119.6 Mil.
COPT Defense Properties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 82.168 (Jun. 2023 ) + 68.723 (Sep. 2023 ) + 66.638 (Dec. 2023 ) + 70.99 (Mar. 2024 ) = $288.5 Mil.
COPT Defense Properties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -101.617 (Jun. 2023 ) + -85.413 (Sep. 2023 ) + -67.776 (Dec. 2023 ) + -78.911 (Mar. 2024 ) = $-333.7 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.
COPT Defense Properties (NYSE:CDP) 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, COPT Defense Properties has a Sloan Ratio of -1.76%, indicating the company is in the safe zone and there is no funny business with accruals.
COPT Defense Properties Sloan Ratio % Related Terms
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COPT Defense Properties (COPT Defense Properties) Business Description
COPT Defense Properties is a real estate investment trust that acquires, manages, and leases office and data center properties throughout the U.S. The majority of the company's real estate portfolio is composed of office buildings in the Baltimore-Washington Corridor and Northern Virginia area. COPT derives nearly all of its income in the form of rental revenue from tenants. Most of the company's revenue comes from the leasing of properties to U.S. Government agencies and its contractors in the national security, defense, and IT sectors, such as Northrop Grumman and Boeing. Regional offices in urban submarkets make also make up a sizable percentage of COPT's total square footage.
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