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.
* 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 Dupont Fabros Technology's Sloan Ratio %
For the REIT - Office subindustry, Dupont Fabros Technology'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.
Dupont Fabros Technology's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Dupont Fabros Technology's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Dupont Fabros Technology's Sloan Ratio % falls into.
Dupont Fabros Technology 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.
Dupont Fabros Technology's Sloan Ratio for the fiscal year that ended in Dec. 2016 is calculated as
Dupont Fabros Technology's Net Income for the trailing twelve months (TTM) ended in Jun. 2017 was 35.822 (Sep. 2016 ) + 37.068 (Dec. 2016 ) + 38.563 (Mar. 2017 ) + 33.457 (Jun. 2017 ) = $144.91 Mil.
Dupont Fabros Technology's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2017 was 73.425 (Sep. 2016 ) + 92.096 (Dec. 2016 ) + 54.612 (Mar. 2017 ) + 82.731 (Jun. 2017 ) = $302.86 Mil.
Dupont Fabros Technology's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2017 was -134.144 (Sep. 2016 ) + -118.709 (Dec. 2016 ) + -141.528 (Mar. 2017 ) + -181.735 (Jun. 2017 ) = $-576.12 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.
Dupont Fabros Technology (NYSE:DFTpB_CL.PFD) 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. 2017, Dupont Fabros Technology has a Sloan Ratio of 12.61%, indicating there is a warning stage of accrual build up.
Dupont Fabros Technology Sloan Ratio % Related Terms
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Dupont Fabros Technology (Dupont Fabros Technology) Business Description
Dupont Fabros Technology, or DFT, is a real estate investment trust engaged in the design and operation of multitenant, wholesale data centers in metropolitan areas across the United States. The company provides the space and infrastructure, such as electrical power, security, and fire suppression services for customers to operate their servers and computing equipment. Its real estate portfolio is composed of large data centers located in the Northern Virginia, Chicago, Greater New York City, and Santa Clara, California areas. DFT derives the majority of its income in the form of rental revenue from tenants in short- to medium-term lease agreements. The company's major customers are technology companies, including Microsoft, Facebook, and Yahoo, which account for most of its revenue.
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