GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » KFH Capital REIT (KUW:BAITAKREIT) » Definitions » Sloan Ratio %

KFH Capital REIT (KUW:BAITAKREIT) Sloan Ratio % : 2.68% (As of Sep. 2024)


View and export this data going back to 2020. Start your Free Trial

What is KFH Capital REIT 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.

KFH Capital REIT's Sloan Ratio for the quarter that ended in Sep. 2024 was 2.68%.

Warning Sign:

When sloan ratio (50.4)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Sep. 2024, KFH Capital REIT has a Sloan Ratio of 2.68%, indicating the company is in the safe zone and there is no funny business with accruals.


KFH Capital REIT Sloan Ratio % Historical Data

The historical data trend for KFH Capital REIT'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.

* Premium members only.

KFH Capital REIT Sloan Ratio % Chart

KFH Capital REIT Annual Data
Trend Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
95.62 1.87 3.98 50.40

KFH Capital REIT Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 51.27 50.40 4.08 2.73 2.68

Competitive Comparison of KFH Capital REIT's Sloan Ratio %

For the REIT - Diversified subindustry, KFH Capital REIT'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.


KFH Capital REIT's Sloan Ratio % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, KFH Capital REIT's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where KFH Capital REIT's Sloan Ratio % falls into.



KFH Capital REIT 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.

KFH Capital REIT's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(2.221-3.038
--30.988)/59.858
=50.40%

KFH Capital REIT's Sloan Ratio for the quarter that ended in Sep. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Sep. 2024 )
=(4.491-2.825
-0.032)/60.942
=2.68%

KFH Capital REIT's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 1.089 (Dec. 2023 ) + 0.647 (Mar. 2024 ) + 2.053 (Jun. 2024 ) + 0.702 (Sep. 2024 ) = KWD4.49 Mil.
KFH Capital REIT's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 0.861 (Dec. 2023 ) + 0.602 (Mar. 2024 ) + 0.654 (Jun. 2024 ) + 0.708 (Sep. 2024 ) = KWD2.83 Mil.
KFH Capital REIT's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 0.009 (Dec. 2023 ) + 0.009 (Mar. 2024 ) + 0.003 (Jun. 2024 ) + 0.011 (Sep. 2024 ) = KWD0.03 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.


KFH Capital REIT  (KUW:BAITAKREIT) 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 Sep. 2024, KFH Capital REIT has a Sloan Ratio of 2.68%, indicating the company is in the safe zone and there is no funny business with accruals.


KFH Capital REIT Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of KFH Capital REIT's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


KFH Capital REIT Business Description

Comparable Companies
Traded in Other Exchanges
N/A
Address
Safat Square Street, P.O Box 3946, Baitek Tower, Floor 23, 32, 33, Safat, KWT, 13040
KFH Capital REIT is an real estate investment company. The fund aims to provide attractive Real Estate opportunities for those wishing to invest in the Real Estate by investing in all types of Real Estates (investment, commercial, industrial, craft) developed and income-generating within the State of Kuwait.

KFH Capital REIT Headlines

No Headlines