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 Dec. 2023, Federal Home Loan Mortgage has a Sloan Ratio of -1.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Federal Home Loan Mortgage 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 Federal Home Loan Mortgage's Sloan Ratio %
For the Mortgage Finance subindustry, Federal Home Loan Mortgage'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.
Federal Home Loan Mortgage's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Federal Home Loan Mortgage's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Federal Home Loan Mortgage's Sloan Ratio % falls into.
Federal Home Loan Mortgage 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.
Federal Home Loan Mortgage's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1995 (Mar. 2023 ) + 2944 (Jun. 2023 ) + 2685 (Sep. 2023 ) + 2914 (Dec. 2023 ) = $10,538 Mil.
Federal Home Loan Mortgage's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3435 (Mar. 2023 ) + 1571 (Jun. 2023 ) + 726 (Sep. 2023 ) + 1883 (Dec. 2023 ) = $7,615 Mil.
Federal Home Loan Mortgage's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 2314 (Mar. 2023 ) + 2929 (Jun. 2023 ) + 22416 (Sep. 2023 ) + 16594 (Dec. 2023 ) = $44,253 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.
Federal Home Loan Mortgage (OTCPK:FMCC) 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, Federal Home Loan Mortgage has a Sloan Ratio of -1.26%, indicating the company is in the safe zone and there is no funny business with accruals.
Federal Home Loan Mortgage Sloan Ratio % Related Terms
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Federal Home Loan Mortgage (Federal Home Loan Mortgage) Business Description
Federal Home Loan Mortgage Corp is a US based government-sponsored enterprise. The company invests in mortgage loans and mortgage-related securities. It operates in the following segments: Single-family, Multifamily. The company is engaged in originating, purchase, and guarantee single-family loans originated by its seller. It provides a guarantee and security for the payment of principal and interest on the mortgage-related securities in exchange for management and guarantee fees. The company purchases multifamily loans for aggregation and then securitization through the issuance of multifamily K Certificates as well as issues and guarantees other securitization products. Majority of the revenue is earned from single family.
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