BETR (Better Home & Finance Holding Co) Sloan Ratio % : 34.77% (As of Dec. 2024)

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What is Better Home & Finance Holding Co 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.

Better Home & Finance Holding Co's Sloan Ratio for the quarter that ended in Dec. 2024 was 34.77%.

Warning Sign:

When sloan ratio (34.77)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Dec. 2024, Better Home & Finance Holding Co has a Sloan Ratio of 34.77%, indicating earnings are more likely to be made up of accruals.

Better Home & Finance Holding Co Sloan Ratio % Historical Data

The historical data trend for Better Home & Finance Holding Co'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.

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Better Home & Finance Holding Co Sloan Ratio % Chart

Better Home & Finance Holding Co Annual Data

Trend

Dec21

Dec22

Dec23

Dec24

Sloan Ratio %

-17.99

-164.37

-37.34

34.77

Better Home & Finance Holding Co Quarterly Data
	Dec21	Mar22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Sloan Ratio %	Get a 7-Day Free Trial							-37.34	-46.89	-16.46	31.31	34.77

Competitive Comparison of Better Home & Finance Holding Co's Sloan Ratio %

For the Mortgage Finance subindustry, Better Home & Finance Holding Co'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.

Better Home & Finance Holding Co's Sloan Ratio % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Better Home & Finance Holding Co's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Better Home & Finance Holding Co's Sloan Ratio % falls into.

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Better Home & Finance Holding Co 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.

Better Home & Finance Holding Co's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2024 )	-	Cash Flow from Operations (A: Dec. 2024 )
	-	Cash Flow from Investing (A: Dec. 2024 ))	/	Total Assets (A: Dec. 2024 )
	=	(-206.29	-	-379.971
	-	-143.81)	/	913.057
	=	34.77%

Better Home & Finance Holding Co's Sloan Ratio for the quarter that ended in Dec. 2024 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2024 )
	=	(-206.29	-	-379.971
	-	-143.81)	/	913.057
	=	34.77%

Better Home & Finance Holding Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -51.492 (Mar. 2024 ) + -41.365 (Jun. 2024 ) + -54.21 (Sep. 2024 ) + -59.223 (Dec. 2024 ) = $-206.3 Mil.
Better Home & Finance Holding Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -42.806 (Mar. 2024 ) + -220.576 (Jun. 2024 ) + -10.563 (Sep. 2024 ) + -106.026 (Dec. 2024 ) = $-380.0 Mil.
Better Home & Finance Holding Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -33.386 (Mar. 2024 ) + -29.588 (Jun. 2024 ) + -48.851 (Sep. 2024 ) + -31.985 (Dec. 2024 ) = $-143.8 Mil.

Better Home & Finance Holding Co (NAS:BETR) 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.

According to How to Beat the Market with the Sloan Ratio:

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, Better Home & Finance Holding Co has a Sloan Ratio of 34.77%, indicating earnings are more likely to be made up of accruals.

Better Home & Finance Holding Co Sloan Ratio % Related Terms

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Better Home & Finance Holding Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Better Home & Finance Holding Co (NAS:BETR) » Definitions » Sloan Ratio %

Comparable Companies

Traded in Other Exchanges

N/A

Address

175 Greenwich street, 3 World trade center, 57th floor, New York, NY, USA, 10007

Website

https://www.better.com

Better Home & Finance Holding Co is a digital-first homeownership company whose services include mortgage, real estate, title, and homeowners insurance. The company has combined technology innovation and fresh thinking with a deep customer focus with the goal of revolutionizing the homeownership industry.

Executives

Thor Bjorgolfsson	director, 10 percent owner, officer: Chairman	430 PARK AVENUE, 2ND FLOOR, NEW YORK NY 10022
J. Calamari Nicholas	officer: CAO and Senior Counsel	450 PARK AVE, STE. 2702, NEW YORK NY 10022
Riaz Valani	director, 10 percent owner	C/O OUSTER, INC., 350 TREAT AVENUE, SAN FRANCISCO CA 94110
Sb Management Ltd	10 percent owner	9TH FLOOR, AL SILA TOWER, ADGM SQUARE, AL MARYAH ISLAND, ABU DHABI C0 NA
Softbank Group Corp	10 percent owner	1-7-1 KAIGAN, MINATO-KU, TOKYO M0 105-7537
Kevin J Ryan	officer: Chief Financial Officer	C/O WESLEY JESSEN VISIONCARE INC, 333 EAST HOWARD AVE, DES PLAINES IL 60018-5903
Vishal Garg	director, 10 percent owner, officer: Chief Executive Officer	C/O MRU HOLDINGS, INC., 1114 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Activant Ventures Iii, Lp	director, 10 percent owner	323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 1, Lp	director, 10 percent owner	323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 2, Lp	director, 10 percent owner	323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 3, Lp	director, 10 percent owner	323 RAILROAD AVE., 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 4, Lp	director, 10 percent owner	323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Activant Ventures Iii Opportunities Fund 6, Lp	director, 10 percent owner	323 RAILROAD AVENUE, 2ND FLOOR, GREENWICH CT 06830
Paula Tuffin	officer: General Counsel and CCO	3 WORLD TRADE CENTER, 175 GREENWICH ST 57TH FLOOR, NEW YORK NY 10007
Svf Ii Beaver (de) Llc	10 percent owner	300 EL CAMINO REAL, MENLO PARK CA 94025