What is Nationstar Mortgage Holdings Sloan Ratio %?
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 Jun. 2018, Nationstar Mortgage Holdings has a Sloan Ratio of -9.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Nationstar Mortgage Holdings 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 Nationstar Mortgage Holdings's Sloan Ratio %
For the Mortgage Finance subindustry, Nationstar Mortgage Holdings'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.
Nationstar Mortgage Holdings's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Nationstar Mortgage Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nationstar Mortgage Holdings's Sloan Ratio % falls into.
Nationstar Mortgage Holdings 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.
Nationstar Mortgage Holdings's Net Income for the trailing twelve months (TTM) ended in Jun. 2018 was 7 (Sep. 2017 ) + 41 (Dec. 2017 ) + 160 (Mar. 2018 ) + 58 (Jun. 2018 ) = $266 Mil.
Nationstar Mortgage Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2018 was 176 (Sep. 2017 ) + 55 (Dec. 2017 ) + 937 (Mar. 2018 ) + 932 (Jun. 2018 ) = $2,100 Mil.
Nationstar Mortgage Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2018 was 19 (Sep. 2017 ) + -1 (Dec. 2017 ) + -21 (Mar. 2018 ) + -121 (Jun. 2018 ) = $-124 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.
Nationstar Mortgage Holdings (NYSE:NSM) 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 Jun. 2018, Nationstar Mortgage Holdings has a Sloan Ratio of -9.95%, indicating the company is in the safe zone and there is no funny business with accruals.
Nationstar Mortgage Holdings Sloan Ratio % Related Terms
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Nationstar Mortgage Holdings (Nationstar Mortgage Holdings) Business Description
Nationstar Mortgage Holdings Inc is a specialty finance company that earns fees through the delivery of quality servicing, origination, and transaction based services principally related to single-family residences throughout the United States. Nationstar provides services to homeowners, home buyers, home sellers, and real estate investors. The company operates four segments: Servicing, Originations, Xome, and Corporate/Other. The vast majority of its revenue is derived from its Servicing segment. Its Originations segment primarily originates conventional residential mortgage loans in all 50 states and the District of Columbia. Its Xome segment is a residential real estate technology company.
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