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.
Galileo Japan Trust's Sloan Ratio for the quarter that ended in Jun. 2016 was 14.51%.
As of Jun. 2016, Galileo Japan Trust has a Sloan Ratio of 14.51%, indicating there is a warning stage of accrual build up.
Galileo Japan Trust (GREY:GLLOF) 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. 2016, Galileo Japan Trust has a Sloan Ratio of 14.51%, indicating there is a warning stage of accrual build up.
Galileo Japan Trust Sloan Ratio % Related Terms
Galileo Japan Trust Sloan Ratio % Historical Data
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The historical data trend for Galileo Japan Trust'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.
For the REIT - Diversified subindustry, Galileo Japan Trust'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.
Galileo Japan Trust Sloan Ratio % vs REITs Industry
For the REITs industry and Real Estate sector, Galileo Japan Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Galileo Japan Trust'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.
Galileo Japan Trust's Sloan Ratio for the fiscal year that ended in Jun. 2016 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Galileo Japan Trust's Net Income for the trailing twelve months (TTM) ended in Jun. 2016 was 20.075 (Dec. 2015 ) + 25.699 (Jun. 2016 ) = $45.77 Mil.
Galileo Japan Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was -0.751 (Dec. 2015 ) + -0.92 (Jun. 2016 ) = $-1.67 Mil.
Galileo Japan Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2016 was 6.842 (Dec. 2015 ) + 7.413 (Jun. 2016 ) = $14.26 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.
Galileo Japan Trust (GLLOF) has a Sloan Ratio % of 14.51% as of Jun. 2016. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Galileo Japan Trust and its competitors.
Is Galileo Japan Trust's Sloan Ratio % too high?
Galileo Japan Trust's current Sloan Ratio % is 14.51%.
How does Galileo Japan Trust's Sloan Ratio % compare to CLPR?
Galileo Japan Trust's Sloan Ratio % of 14.51% can be compared against companies in the REITs industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a REITs company?
A good Sloan Ratio % depends on the REITs industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on Galileo Japan Trust and its competitors. Galileo Japan Trust's current Sloan Ratio % is 14.51%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Galileo Japan Trust stock overvalued right now?
Galileo Japan Trust (GLLOF) has a current Sloan Ratio % of 14.51%. The current Sloan Ratio % is 14.51%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For Galileo Japan Trust (GLLOF), the current Sloan Ratio % is 14.51% as of Jun. 2016. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Galileo Japan Trust is a property trust which indirectly invests in a diverse portfolio of real estate assets in Japan. Galileo Japan Funds Management Limited is the responsible entity of the Trust.
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