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.
Roadside Real Estate's Sloan Ratio for the quarter that ended in Mar. 2024 was 35.15%.
Warning Sign:
When sloan ratio (-26.92)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Roadside Real Estate has a Sloan Ratio of 35.15%, indicating earnings are more likely to be made up of accruals.
Roadside Real Estate Sloan Ratio % Historical Data
The historical data trend for Roadside Real Estate'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 Roadside Real Estate's Sloan Ratio %
For the Real Estate - Development subindustry, Roadside Real Estate'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.
Roadside Real Estate's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Roadside Real Estate's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Roadside Real Estate's Sloan Ratio % falls into.
Roadside Real Estate 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.
Roadside Real Estate's Sloan Ratio for the fiscal year that ended in Jun. 2021 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Roadside Real Estate's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -2.702 (Dec. 2022 ) + 3.338 (Mar. 2024 ) = £0.64 Mil.
Roadside Real Estate's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -2.264 (Dec. 2022 ) + -0.997 (Mar. 2024 ) = £-3.26 Mil.
Roadside Real Estate's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -3.266 (Dec. 2022 ) + -0.421 (Mar. 2024 ) = £-3.69 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.
Roadside Real Estate (LSE:ROAD) 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 Mar. 2024, Roadside Real Estate has a Sloan Ratio of 35.15%, indicating earnings are more likely to be made up of accruals.
Roadside Real Estate Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Roadside Real Estate's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Roadside Real Estate PLC is a roadside real estate business focused on building and acquiring a high-quality portfolio of modern, ESG-compliant roadside real estate assets targeting a clear market opportunity. It plans to build and acquire drive-thrus, trade counters, last-mile logistics, convenience food, EV charging hubs, and light industrial commercial uses.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LSE:ROAD has been successfully added to your 