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.
Lendlease Group's Sloan Ratio for the quarter that ended in Dec. 2024 was -10.73%.
As of Dec. 2024, Lendlease Group has a Sloan Ratio of -10.73%, indicating there is a warning stage of accrual build up.
Lendlease Group Sloan Ratio % Historical Data
The historical data trend for Lendlease Group'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.
Competitive Comparison of Lendlease Group's Sloan Ratio %
For the Real Estate - Diversified subindustry, Lendlease Group'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.
Lendlease Group's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Lendlease Group's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Lendlease Group's Sloan Ratio % falls into.
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.
Lendlease Group'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.
Lendlease Group's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -1366 (Jun. 2024 ) + 48 (Dec. 2024 ) = A$-1,318 Mil.
Lendlease Group's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 611 (Jun. 2024 ) + -499 (Dec. 2024 ) = A$112 Mil.
Lendlease Group's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 52 (Jun. 2024 ) + 186 (Dec. 2024 ) = A$238 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.
Lendlease Group (ASX:LLC) 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. 2024, Lendlease Group has a Sloan Ratio of -10.73%, indicating there is a warning stage of accrual build up.
Lendlease Group Sloan Ratio % Related Terms
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Lendlease has three segments: investments, development, and construction. Lendlease operates locally and overseas across all three segments. However, in the future, its development and construction businesses will be solely in Australia, while the investment management platform will maintain exposure to international real estate assets. Historically, the investments segment contributed about one-third of group EBITDA, development around half, and construction the remaining. The group is targeting an earnings mix between investments/development/construction of 50%/35%/15% post the current restructure, shifting more weights to the defensive and higher margin investments segment. Sales proceeds from asset divestments will primarily be used to repay debt and buy back securities.
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