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.
Mirvac Group's Sloan Ratio for the quarter that ended in Dec. 2023 was -4.80%.
As of Dec. 2023, Mirvac Group has a Sloan Ratio of -4.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Mirvac Group Sloan Ratio % Historical Data
The historical data trend for Mirvac Group'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 Mirvac Group's Sloan Ratio %
For the REIT - Diversified subindustry, Mirvac Group'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.
Mirvac Group's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Mirvac Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Mirvac Group's Sloan Ratio % falls into.
Mirvac Group 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.
Mirvac Group's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Mirvac Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -380 (Jun. 2023 ) + -201 (Dec. 2023 ) = A$-581 Mil.
Mirvac Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 142 (Jun. 2023 ) + 27 (Dec. 2023 ) = A$169 Mil.
Mirvac Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -59 (Jun. 2023 ) + 101 (Dec. 2023 ) = A$42 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.
Mirvac Group (ASX:MGR) 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, Mirvac Group has a Sloan Ratio of -4.80%, indicating the company is in the safe zone and there is no funny business with accruals.
Mirvac Group Sloan Ratio % Related Terms
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Mirvac is one of Australia's largest residential developers, particularly apartments. Residential development earnings are volatile, generating about a fifth of EBIT in fiscal 2023, despite accounting for only about 15% of the group's invested capital. Over our 10-year discrete forecast period we don't expect residential development to exceed the lofty peaks seen in 2017, when Mirvac settled 3,400 residential lots, however, we expect modest growth over time as Mirvac gains market share and constructs housing into an under-supplied market. About 80% of Mirvac's earnings come from a predictable commercial property portfolio, more than half of which is high-grade office and another fourth in retail, a small industrial portfolio, and a small but growing build-to-rent residential portfolio.
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