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, Summit Hotel Properties has a Sloan Ratio of -2.08%, indicating the company is in the safe zone and there is no funny business with accruals.
Summit Hotel Properties 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 Summit Hotel Properties's Sloan Ratio %
For the REIT - Hotel & Motel subindustry, Summit Hotel 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.
Summit Hotel Properties's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Summit Hotel Properties's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Summit Hotel Properties's Sloan Ratio % falls into.
Summit Hotel 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.
Summit Hotel Properties's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Summit Hotel Properties's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -0.601 (Mar. 2023 ) + 3.872 (Jun. 2023 ) + -0.814 (Sep. 2023 ) + -11.946 (Dec. 2023 ) = $-9.5 Mil.
Summit Hotel Properties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 32.006 (Mar. 2023 ) + 47.048 (Jun. 2023 ) + 44.113 (Sep. 2023 ) + 30.474 (Dec. 2023 ) = $153.6 Mil.
Summit Hotel Properties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -25.408 (Mar. 2023 ) + -35.322 (Jun. 2023 ) + -23.605 (Sep. 2023 ) + -17.623 (Dec. 2023 ) = $-102.0 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.
Summit Hotel Properties (NYSE:INN) 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, Summit Hotel Properties has a Sloan Ratio of -2.08%, indicating the company is in the safe zone and there is no funny business with accruals.
Summit Hotel Properties Sloan Ratio % Related Terms
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Summit Hotel Properties (Summit Hotel Properties) Business Description
Summit Hotel Properties Inc is a U.S.-based hotel investment company focusing on select-service hotels in the upscale and upper-midscale properties in the U.S. Substantially all of Summit's assets are held and operated by its Operating Partnership, Summit Hotel OP, LP, in which the company holds general and limited partnership interests. The firm has one segment in activities related to investing in real estate. Summit's revenue streams include Room and Other hotel operations revenue. Room comprises the majority of total revenues. The firm's hotels are located in various markets, such as corporate offices, retail centers, airports, state capitols, convention centers, and leisure attractions. Summit's hotels operate under brands, including Marriott, Hilton, Hyatt, and Holiday Inn.
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