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. 2016, Silver Bay Realty Trust has a Sloan Ratio of -2.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Silver Bay Realty Trust 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 Silver Bay Realty Trust's Sloan Ratio %
For the REIT - Residential subindustry, Silver Bay Realty Trust'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.
Silver Bay Realty Trust's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Silver Bay Realty Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Silver Bay Realty Trust's Sloan Ratio % falls into.
Silver Bay Realty Trust 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.
Silver Bay Realty Trust's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Silver Bay Realty Trust's Net Income for the trailing twelve months (TTM) ended in Dec. 2016 was -3.379 (Mar. 2016 ) + -0.209 (Jun. 2016 ) + -1.567 (Sep. 2016 ) + 2.692 (Dec. 2016 ) = $-2.5 Mil.
Silver Bay Realty Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2016 was 5.453 (Mar. 2016 ) + 8.331 (Jun. 2016 ) + 10.451 (Sep. 2016 ) + 7.996 (Dec. 2016 ) = $32.2 Mil.
Silver Bay Realty Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2016 was 3.281 (Mar. 2016 ) + 5.889 (Jun. 2016 ) + -33.354 (Sep. 2016 ) + 23.721 (Dec. 2016 ) = $-0.5 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.
Silver Bay Realty Trust (NYSE:SBY) 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. 2016, Silver Bay Realty Trust has a Sloan Ratio of -2.81%, indicating the company is in the safe zone and there is no funny business with accruals.
Silver Bay Realty Trust Sloan Ratio % Related Terms
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Silver Bay Realty Trust (Silver Bay Realty Trust) Business Description
Silver Bay Realty Trust Corp was incorporated in Maryland in June 2012. The Company is engaged in acquisition, renovation, leasing, and management of single-family properties in select markets in the United States. As of December 31, 2013, the company owned 5,642 single-family properties in Arizona, California, Florida, Georgia, Nevada, North Carolina, Ohio, and Texas, excluding properties held for sale. The Company conducts its business and owns all of its properties through Silver Bay Operating Partnership L.P., or the Operating Partnership, a Delaware limited partnership. acquire single-family properties through a variety of acquisition channels, including brokers, multiple listing services, short sales, foreclosure auctions, online auctions, and bulk purchases from institutions or investor groups. The Company face competition from individual investors, private pools of capital and other institutional buyers which may increase the prices for properties that they would like to purchase and reduce its ability to achieve its desired portfolio size or expected yields. They also compete for desirable residents against the same entities as well as multifamily lessors. The Company's properties are subject to various covenants, laws, and ordinances, and certain of its properties are also subject to the rules of the various homeowners' associations where such properties are located.
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