What is NexPoint Real Estate Finance 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.
* 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 NexPoint Real Estate Finance's Sloan Ratio %
For the REIT - Mortgage subindustry, NexPoint Real Estate Finance'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.
NexPoint Real Estate Finance's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, NexPoint Real Estate Finance's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where NexPoint Real Estate Finance's Sloan Ratio % falls into.
NexPoint Real Estate Finance 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.
NexPoint Real Estate Finance's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 14.589 (Dec. 2023 ) + -13.412 (Mar. 2024 ) + 8.362 (Jun. 2024 ) + 19.393 (Sep. 2024 ) = $28.93 Mil.
NexPoint Real Estate Finance's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 3.128 (Dec. 2023 ) + 17.711 (Mar. 2024 ) + -7.503 (Jun. 2024 ) + 14.717 (Sep. 2024 ) = $28.05 Mil.
NexPoint Real Estate Finance's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was 101.857 (Dec. 2023 ) + 545.411 (Mar. 2024 ) + 51.596 (Jun. 2024 ) + 138.928 (Sep. 2024 ) = $837.79 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.
NexPoint Real Estate Finance (NYSE:NREF) 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 Sep. 2024, NexPoint Real Estate Finance has a Sloan Ratio of -14.72%, indicating there is a warning stage of accrual build up.
NexPoint Real Estate Finance Sloan Ratio % Related Terms
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NexPoint Real Estate Finance Inc is a real estate investment trust. It provides structured financing solutions by investing in mid-sized multifamily, storage and select-service, and extended-stay hospitality properties. Its investment objective is to generate attractive, risk-adjusted returns for stockholders over the long term. The Company is focused on originating, structuring and investing in first-lien mortgage loans, mezzanine loans, preferred equity, convertible notes, multifamily properties, and common equity investments, as well as multi-family and single-family rental ("SFR") commercial mortgage-backed securities securitizations ("CMBS securitizations"), multifamily structured credit risk notes ("MSCR Notes") and mortgage-backed securities.
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