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.
Caplease,'s Sloan Ratio for the quarter that ended in Jun. 2013 was 6.98%.
As of Jun. 2013, Caplease, has a Sloan Ratio of 6.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Caplease, Sloan Ratio % Historical Data
The historical data trend for Caplease,'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 Caplease,'s Sloan Ratio %
For the REIT - Office subindustry, Caplease,'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.
Caplease,'s Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Caplease,'s Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Caplease,'s Sloan Ratio % falls into.
Caplease, 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.
Caplease,'s Sloan Ratio for the fiscal year that ended in Dec. 2012 is calculated as
Caplease,'s Net Income for the trailing twelve months (TTM) ended in Jun. 2013 was 1.148 (Sep. 2012 ) + 0.897 (Dec. 2012 ) + 1.575 (Mar. 2013 ) + 0.354 (Jun. 2013 ) = €4.0 Mil.
Caplease,'s Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2013 was 13.585 (Sep. 2012 ) + 10.518 (Dec. 2012 ) + 12.551 (Mar. 2013 ) + 15.131 (Jun. 2013 ) = €51.8 Mil.
Caplease,'s Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2013 was -11.678 (Sep. 2012 ) + -72.026 (Dec. 2012 ) + -6.51 (Mar. 2013 ) + -54.053 (Jun. 2013 ) = €-144.3 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.
Caplease, (FRA:DBJ) 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. 2013, Caplease, has a Sloan Ratio of 6.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Caplease, Sloan Ratio % Related Terms
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CapLease, Inc. was incorporated in Maryland. The Company completed its initial public offering in March 2004. It is a real estate investment trust, or REIT, that invests mainly in single tenant commercial real estate assets subject to long-term leases to high credit quality tenants. It focuses on properties that are subject to a net lease, or a lease that requires the tenant to pay all or substantially all expenses normally associated with the ownership of the property, such as utilities, real estate taxes, insurance and routine maintenance. The Company also has made and expects to continue to make investments in single tenant properties where the owner has exposure to property expenses when it determines it could sufficiently underwrite that exposure and isolate a predictable cash flow. The Company has two complimentary business lines: owning single tenant properties and making first mortgage loans and other debt investments on single tenant properties. It conducts its business through a number of subsidiaries. The Company owns most of its owned properties through its predecessor and operating partnership, Caplease, LP (the 'Operating Partnership'). It is the indirect sole general partner of, and owns approximately 99.6% of the common equity of, the Operating Partnership. The Company is subject to competition in each of its business segments. It competes with specialty finance companies, insurance companies, commercial banks, investment banks, savings and loan associations, mortgage bankers, mutual funds, institutional investors, pension funds, hedge funds, other lenders, governmental bodies and individuals and other entities, including REITs.
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