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.
Host Hotels & Resorts's Sloan Ratio for the quarter that ended in Dec. 2023 was -4.23%.
As of Dec. 2023, Host Hotels & Resorts has a Sloan Ratio of -4.23%, indicating the company is in the safe zone and there is no funny business with accruals.
Host Hotels & Resorts Sloan Ratio % Historical Data
The historical data trend for Host Hotels & Resorts'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 Host Hotels & Resorts's Sloan Ratio %
For the REIT - Hotel & Motel subindustry, Host Hotels & Resorts'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.
Host Hotels & Resorts's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Host Hotels & Resorts's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Host Hotels & Resorts's Sloan Ratio % falls into.
Host Hotels & Resorts 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.
Host Hotels & Resorts's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Host Hotels & Resorts's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 287 (Mar. 2023 ) + 210 (Jun. 2023 ) + 111 (Sep. 2023 ) + 132 (Dec. 2023 ) = $740 Mil.
Host Hotels & Resorts's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 308 (Mar. 2023 ) + 512 (Jun. 2023 ) + 314 (Sep. 2023 ) + 307 (Dec. 2023 ) = $1,441 Mil.
Host Hotels & Resorts's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -105 (Mar. 2023 ) + -170 (Jun. 2023 ) + 12 (Sep. 2023 ) + 80 (Dec. 2023 ) = $-183 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.
Host Hotels & Resorts (NAS:HST) 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, Host Hotels & Resorts has a Sloan Ratio of -4.23%, indicating the company is in the safe zone and there is no funny business with accruals.
Host Hotels & Resorts Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Host Hotels & Resorts's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Host Hotels & Resorts (Host Hotels & Resorts) Business Description
Host Hotels & Resorts owns 77 predominantly urban and resort upper-upscale and luxury hotel properties representing nearly 42,000 rooms, mainly in the United States. Host recently sold off the company's interests in a joint venture owning a portfolio of hotels throughout Europe and also sold other joint ventures that owned properties in Asia and the United States. The majority of Host's portfolio operates under the Marriott and Starwood brands.
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