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.
Equites Property Fund's Sloan Ratio for the quarter that ended in Feb. 2024 was 6.57%.
As of Feb. 2024, Equites Property Fund has a Sloan Ratio of 6.57%, indicating the company is in the safe zone and there is no funny business with accruals.
Equites Property Fund Sloan Ratio % Historical Data
The historical data trend for Equites Property Fund'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 Equites Property Fund's Sloan Ratio %
For the REIT - Industrial subindustry, Equites Property Fund'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.
Equites Property Fund's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Equites Property Fund's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Equites Property Fund's Sloan Ratio % falls into.
Equites Property Fund 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.
Equites Property Fund's Sloan Ratio for the fiscal year that ended in Feb. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Equites Property Fund's Net Income for the trailing twelve months (TTM) ended in Feb. 2024 was 426.753 (Aug. 2023 ) + 725.012 (Feb. 2024 ) = R1,152 Mil.
Equites Property Fund's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2024 was -832.268 (Aug. 2023 ) + 551.504 (Feb. 2024 ) = R-281 Mil.
Equites Property Fund's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2024 was -571.134 (Aug. 2023 ) + 18.056 (Feb. 2024 ) = R-553 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.
Equites Property Fund (JSE:EQU) 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 Feb. 2024, Equites Property Fund has a Sloan Ratio of 6.57%, indicating the company is in the safe zone and there is no funny business with accruals.
Equites Property Fund Sloan Ratio % Related Terms
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Equites Property Fund (JSE:EQU) Business Description
Equites Property Fund Ltd is a real estate investment trust based in South Africa. It is engaged in the investment in and development of commercial properties in the industrial sector. The group has assessed its operations and determined its segments in line with the clear geographic distinction between South Africa and the United Kingdom. SA Industrial segment generates the revenue.
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