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.
As of Mar. 2022, MGM Growth Properties LLC has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
MGM Growth Properties LLC Sloan Ratio % Historical Data
* 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 MGM Growth Properties LLC's Sloan Ratio %
For the REIT - Diversified subindustry, MGM Growth Properties LLC'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.
MGM Growth Properties LLC's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, MGM Growth Properties LLC's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where MGM Growth Properties LLC's Sloan Ratio % falls into.
MGM Growth Properties LLC 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.
MGM Growth Properties LLC's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
MGM Growth Properties LLC's Net Income for the trailing twelve months (TTM) ended in Mar. 2022 was 43.889 (Jun. 2021 ) + 49.968 (Sep. 2021 ) + 52.048 (Dec. 2021 ) + 69.428 (Mar. 2022 ) = $215.3 Mil.
MGM Growth Properties LLC's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2022 was 169.935 (Jun. 2021 ) + 159.147 (Sep. 2021 ) + 181.866 (Dec. 2021 ) + 190.364 (Mar. 2022 ) = $701.3 Mil.
MGM Growth Properties LLC's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2022 was 0 (Jun. 2021 ) + 0 (Sep. 2021 ) + 0 (Dec. 2021 ) + 0 (Mar. 2022 ) = $0.0 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.
MGM Growth Properties LLC (NYSE:MGP) 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. 2022, MGM Growth Properties LLC has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
MGM Growth Properties LLC Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of MGM Growth Properties LLC's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
MGM Growth Properties LLC (MGM Growth Properties LLC) Business Description
MGM Growth Properties LLC is a real estate investment trust engaged in owning, acquiring and leasing large-scale casino resort properties, including casino gaming, hotel, convention, dining, entertainment, retail and mixed-use facilities, and other resort amenities. The company's property portfolio consists of entertainment and gaming-related properties located on the Las Vegas Strip Mandalay Bay, The Mirage, Monte Carlo, New York-New York, Luxor and Excalibur, and The Park, a dining and entertainment complex located between New York-New York and Monte Carlo. It owns casino resort properties MGM Grand Detroit in Detroit, Michigan, Beau Rivage and Gold Strike Tunica, located in Mississippi, Borgata in Atlantic City, New Jersey, and MGM National Harbor in Prince George's County, Maryland.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MGP has been successfully added to your 