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 Jun. 2019, Chesapeake Lodging Trust has a Sloan Ratio of -5.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Chesapeake Lodging Trust 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 Chesapeake Lodging Trust's Sloan Ratio %
For the REIT - Hotel & Motel subindustry, Chesapeake Lodging Trust'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.
Chesapeake Lodging Trust's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Chesapeake Lodging Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chesapeake Lodging Trust's Sloan Ratio % falls into.
Chesapeake Lodging Trust 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.
Chesapeake Lodging Trust's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
Chesapeake Lodging Trust's Net Income for the trailing twelve months (TTM) ended in Jun. 2019 was 53.379 (Sep. 2018 ) + 13.228 (Dec. 2018 ) + 8.251 (Mar. 2019 ) + 18.241 (Jun. 2019 ) = $93.1 Mil.
Chesapeake Lodging Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2019 was 52.539 (Sep. 2018 ) + 46.47 (Dec. 2018 ) + 15.889 (Mar. 2019 ) + 36.121 (Jun. 2019 ) = $151.0 Mil.
Chesapeake Lodging Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2019 was 78.661 (Sep. 2018 ) + -11.832 (Dec. 2018 ) + -8.961 (Mar. 2019 ) + -7.215 (Jun. 2019 ) = $50.7 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.
Chesapeake Lodging Trust (NYSE:CHSP) 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 Jun. 2019, Chesapeake Lodging Trust has a Sloan Ratio of -5.58%, indicating the company is in the safe zone and there is no funny business with accruals.
Chesapeake Lodging Trust Sloan Ratio % Related Terms
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Chesapeake Lodging Trust (Chesapeake Lodging Trust) Business Description
Chesapeake Lodging Trust is a real estate investment trust that invests in upper-upscale hotels in business and convention markets and, selectively, premium select-service hotels in urban settings and other locations in the United States. The company operates through its hotel ownership segment. The firm's operations include management agreements, which includes partnering with third parties to manage its hotels; franchise agreements; and TRS lease agreements, which are intercompany agreements between Chesapeake's property-owning subsidiaries and its TRS lessees. The company's revenue streams include room, food and beverage, and other, of which the room segment contributes the vast majority of total revenue.
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