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 Schroder Real Estate IT's Sloan Ratio %
For the REIT - Diversified subindustry, Schroder Real Estate IT'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.
Schroder Real Estate IT's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Schroder Real Estate IT's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Schroder Real Estate IT's Sloan Ratio % falls into.
Schroder Real Estate IT 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.
Schroder Real Estate IT's Sloan Ratio for the fiscal year that ended in Mar. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Schroder Real Estate IT's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -57.397 (Mar. 2023 ) + 3.48 (Sep. 2023 ) = £-53.92 Mil.
Schroder Real Estate IT's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 12.725 (Mar. 2023 ) + 10.794 (Sep. 2023 ) = £23.52 Mil.
Schroder Real Estate IT's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was -1.935 (Mar. 2023 ) + -3.241 (Sep. 2023 ) = £-5.18 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.
Schroder Real Estate IT (LSE:SREI) 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 Sep. 2023, Schroder Real Estate IT has a Sloan Ratio of -14.95%, indicating there is a warning stage of accrual build up.
Schroder Real Estate IT Sloan Ratio % Related Terms
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Schroder Real Estate IT (LSE:SREI) Business Description
Schroder Real Estate IT Ltd is a real estate investment company. The company provides shareholders with income together with the potential for income and capital growth through investing in United Kingdom commercial property. Its only reporting segments is property investment. Geographically, the company operates in the United Kingdom. Its portfolio invests in the three main United Kingdom commercial real estate sectors of office, industrial and retail, and in other sectors including residential, leisure, healthcare and student accommodation.
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