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.
Crown Castle's Sloan Ratio for the quarter that ended in Mar. 2024 was -0.77%.
As of Mar. 2024, Crown Castle has a Sloan Ratio of -0.77%, indicating the company is in the safe zone and there is no funny business with accruals.
Crown Castle Sloan Ratio % Historical Data
The historical data trend for Crown Castle'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 Crown Castle's Sloan Ratio %
For the REIT - Specialty subindustry, Crown Castle'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.
Crown Castle's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Crown Castle's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Crown Castle's Sloan Ratio % falls into.
Crown Castle 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.
Crown Castle's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Crown Castle's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 455 (Jun. 2023 ) + 265 (Sep. 2023 ) + 363 (Dec. 2023 ) + 311 (Mar. 2024 ) = $1,394 Mil.
Crown Castle's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1119 (Jun. 2023 ) + 533 (Sep. 2023 ) + 868 (Dec. 2023 ) + 599 (Mar. 2024 ) = $3,119 Mil.
Crown Castle's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -399 (Jun. 2023 ) + -349 (Sep. 2023 ) + -364 (Dec. 2023 ) + -320 (Mar. 2024 ) = $-1,432 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.
Crown Castle (NYSE:CCI) 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 Mar. 2024, Crown Castle has a Sloan Ratio of -0.77%, indicating the company is in the safe zone and there is no funny business with accruals.
Crown Castle Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Crown Castle's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Crown Castle International owns and leases roughly 40,000 cell towers in the United States. It also owns more than 85,000 route miles of fiber. It leases space on its towers to wireless service providers, which install equipment on the towers to support their wireless networks. The company's fiber is primarily leased by wireless service providers to set up small-cell network infrastructure and by enterprises for their internal connection needs. Crown Castle's towers and fiber are predominantly located in the largest U.S. cities. The company has a very concentrated customer base, with more than 70% of its revenue coming from the big three U.S. mobile carriers. Crown Castle operates as a real estate investment trust.
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