Highwoods Properties (Highwoods Properties) Sloan Ratio %

: -1.14% (As of Dec. 2023)

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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.

Highwoods Properties's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.14%.

As of Dec. 2023, Highwoods Properties has a Sloan Ratio of -1.14%, indicating the company is in the safe zone and there is no funny business with accruals.

Highwoods Properties Sloan Ratio % Historical Data

The historical data trend for Highwoods Properties'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.

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Highwoods Properties Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

7.37

-2.33

3.27

5.81

-1.14

Highwoods Properties Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %																5.81	6.25	6.08	2.60	-1.14

Competitive Comparison

For the REIT - Office subindustry, Highwoods Properties'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.

Highwoods Properties Sloan Ratio % Distribution

For the REITs industry and Real Estate sector, Highwoods Properties's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Highwoods Properties's Sloan Ratio % falls into.

Highwoods Properties 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.

Highwoods Properties's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(148.715	-	386.962
	-	-169.686)	/	6002.928
	=	-1.14%

Highwoods Properties's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(148.715	-	386.962
	-	-169.686)	/	6002.928
	=	-1.14%

Highwoods Properties's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 44.455 (Mar. 2023 ) + 42.919 (Jun. 2023 ) + 22.723 (Sep. 2023 ) + 38.618 (Dec. 2023 ) = $148.7 Mil.
Highwoods Properties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 65.669 (Mar. 2023 ) + 115.451 (Jun. 2023 ) + 103.051 (Sep. 2023 ) + 102.791 (Dec. 2023 ) = $387.0 Mil.
Highwoods Properties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -74.536 (Mar. 2023 ) + 6.362 (Jun. 2023 ) + -62.793 (Sep. 2023 ) + -38.719 (Dec. 2023 ) = $-169.7 Mil.

Highwoods Properties (NYSE:HIW) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Highwoods Properties has a Sloan Ratio of -1.14%, indicating the company is in the safe zone and there is no funny business with accruals.

Highwoods Properties Sloan Ratio % Related Terms

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Highwoods Properties (Highwoods Properties) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Highwoods Properties Inc (NYSE:HIW) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

150 Fayetteville Street, Suite 1400, Raleigh, NC, USA, 27601

Website

https://www.highwoods.com

Highwoods Properties Inc is a real estate investment trust engaged in the acquisition, ownership, management, and leasing of properties in urban areas throughout the Southern United States. In terms of total square footage, the vast majority of the company's real estate portfolio comprises office buildings in terms. Highwoods Properties derives nearly all of its income in the form of rental revenue from the tenants of its buildings. The majority of this revenue comes from its holdings in the urban markets of Atlanta, Raleigh, Nashville, and Tampa. These cities also account for the majority of the square footage under the company's ownership. Highwoods Properties' largest customers include the U.S. Government, financial services firms, industrial supply retailers, and healthcare companies.

Executives

Brian M Leary	officer: EVP & COO	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Theodore J Klinck	officer: VP/Chief Investment Officer	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Brendan C Maiorana	officer: EVP of Finance & IR	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Jeffrey Douglas Miller	officer: General Counsel & Sec.	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
David L Gadis	director	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Mark F Mulhern	director	410 S. WILMINGTON STREET, RALEIGH NC 27601
David John Hartzell	director	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Thomas P Anderson	director	3751 GRISSOM PARKWAY, SUITE 100, MYRTLE BEACH SC 29577
Carlos E Evans	director	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27616
Anne H Lloyd	director
Sherry A Kellett	director
Edward J Fritsch	director, officer: EVP & COO
Kevin E Penn	officer: VP/Chief Strategy & Admin	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604
Michael E Harris	officer: Sr. Vice President
Terry L Stevens	officer: VP, CFO & Treasurer	3100 SMOKETREE COURT, SUITE 600, RALEIGH NC 27604