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.
Public Storage's Sloan Ratio for the quarter that ended in Sep. 2024 was -0.88%.
As of Sep. 2024, Public Storage has a Sloan Ratio of -0.88%, indicating the company is in the safe zone and there is no funny business with accruals.
Public Storage Sloan Ratio % Historical Data
The historical data trend for Public Storage'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 Public Storage's Sloan Ratio %
For the REIT - Industrial subindustry, Public Storage'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.
Public Storage's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Public Storage's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Public Storage's Sloan Ratio % falls into.
Public Storage 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.
Public Storage's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Public Storage's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 439.292 (Dec. 2023 ) + 508.948 (Mar. 2024 ) + 518.127 (Jun. 2024 ) + 430.329 (Sep. 2024 ) = $1,896.70 Mil.
Public Storage's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 791.684 (Dec. 2023 ) + 665.586 (Mar. 2024 ) + 895.279 (Jun. 2024 ) + 798.77 (Sep. 2024 ) = $3,151.32 Mil.
Public Storage's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -490.217 (Dec. 2023 ) + -186.584 (Mar. 2024 ) + -191.075 (Jun. 2024 ) + -213.335 (Sep. 2024 ) = $-1,081.21 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.
Public Storage (NYSE:PSApE.PFD) 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, Public Storage has a Sloan Ratio of -0.88%, indicating the company is in the safe zone and there is no funny business with accruals.
Public Storage Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Public Storage's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Public Storage is the largest owner of self-storage facilities in the us with more than 3,000 self-storage facilities in 40 states and approximately 219 million square feet of rentable space. Through equity interests, it also has exposure to the European self-storage market through Shurgard Self Storage. The company also has a merchandise business, a third-party property management business, and an insurance business that offers products to cover losses for the goods in self-storage facilities.
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