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.
Fukuoka REIT's Sloan Ratio for the quarter that ended in Aug. 2023 was 0.37%.
As of Aug. 2023, Fukuoka REIT has a Sloan Ratio of 0.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Fukuoka REIT Sloan Ratio % Historical Data
The historical data trend for Fukuoka REIT'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 Fukuoka REIT's Sloan Ratio %
For the REIT - Diversified subindustry, Fukuoka 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.
Fukuoka REIT's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Fukuoka REIT's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Fukuoka REIT's Sloan Ratio % falls into.
Fukuoka 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.
Fukuoka REIT's Sloan Ratio for the fiscal year that ended in Aug. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Fukuoka REIT's Net Income for the trailing twelve months (TTM) ended in Aug. 2023 was 2849.927 (Feb. 2023 ) + 2987.191 (Aug. 2023 ) = 円5,837 Mil.
Fukuoka REIT's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2023 was 4688.104 (Feb. 2023 ) + 3939.28 (Aug. 2023 ) = 円8,627 Mil.
Fukuoka REIT's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2023 was -117.604 (Feb. 2023 ) + -3436.4 (Aug. 2023 ) = 円-3,554 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.
Fukuoka REIT (TSE:8968) 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 Aug. 2023, Fukuoka REIT has a Sloan Ratio of 0.37%, indicating the company is in the safe zone and there is no funny business with accruals.
Fukuoka REIT Sloan Ratio % Related Terms
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Fukuoka REIT Corp is an REIT based in Japan. The company manages a portfolio with a focus on entertainment retail facilities and office buildings in the Fukuoka metropolitan area and other neighbouring areas in the Kyushu region. Fukuoka REIT's asset manager, Fukuoka Realty, provides real estate management, acquisition, arrangement of new property, fundraising, and other operations under contracts. The firm diversifies in retail, office buildings, and other types of property, including residences, hotels, logistics facilities, and public and other facilities. Retail property represents more than half of the portfolio assets.
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