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. 2024, HomeCo Daily Needs REIT has a Sloan Ratio of -0.69%, indicating the company is in the safe zone and there is no funny business with accruals.
HomeCo Daily Needs REIT 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 HomeCo Daily Needs REIT's Sloan Ratio %
For the REIT - Retail subindustry, HomeCo Daily Needs REIT'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.
HomeCo Daily Needs REIT's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, HomeCo Daily Needs REIT's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where HomeCo Daily Needs REIT's Sloan Ratio % falls into.
HomeCo Daily Needs REIT 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.
HomeCo Daily Needs REIT's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
HomeCo Daily Needs REIT's Net Income for the trailing twelve months (TTM) ended in Jun. 2024 was -10.7 (Dec. 2023 ) + 92.7 (Jun. 2024 ) = A$82.0 Mil.
HomeCo Daily Needs REIT's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2024 was 93.6 (Dec. 2023 ) + 75.5 (Jun. 2024 ) = A$169.1 Mil.
HomeCo Daily Needs REIT's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2024 was 6.6 (Dec. 2023 ) + -60.5 (Jun. 2024 ) = A$-53.9 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.
HomeCo Daily Needs REIT (ASX:HDN) 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. 2024, HomeCo Daily Needs REIT has a Sloan Ratio of -0.69%, indicating the company is in the safe zone and there is no funny business with accruals.
HomeCo Daily Needs REIT Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of HomeCo Daily Needs REIT's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
HomeCo Daily Needs REIT is an externally managed property trust run by HMC Capital which also runs HealthCo Healthcare and Wellness REIT and unlisted funds. The company generates revenue from Property rental and Other property income. The company invests in convenience-based assets across the target sub-sectors of Neighbourhood Retail, Large Format Retail, and Health & Services.
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