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.
alstria office REIT-AG's Sloan Ratio for the quarter that ended in Mar. 2024 was -13.64%.
As of Mar. 2024, alstria office REIT-AG has a Sloan Ratio of -13.64%, indicating there is a warning stage of accrual build up.
alstria office REIT-AG 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 alstria office REIT-AG's Sloan Ratio %
For the REIT - Office subindustry, alstria office REIT-AG'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.
alstria office REIT-AG's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, alstria office REIT-AG's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where alstria office REIT-AG's Sloan Ratio % falls into.
alstria office REIT-AG 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.
alstria office REIT-AG's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
alstria office REIT-AG's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 16.512 (Jun. 2023 ) + -33.85 (Sep. 2023 ) + -628.73 (Dec. 2023 ) + 28.319 (Mar. 2024 ) = €-617.7 Mil.
alstria office REIT-AG's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 17.306 (Jun. 2023 ) + 32.3 (Sep. 2023 ) + 13.366 (Dec. 2023 ) + 39.482 (Mar. 2024 ) = €102.5 Mil.
alstria office REIT-AG's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -39.497 (Jun. 2023 ) + -36.804 (Sep. 2023 ) + -24.464 (Dec. 2023 ) + -31.242 (Mar. 2024 ) = €-132.0 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.
alstria office REIT-AG (STU:AOX) 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, alstria office REIT-AG has a Sloan Ratio of -13.64%, indicating there is a warning stage of accrual build up.
alstria office REIT-AG Sloan Ratio % Related Terms
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alstria office REIT-AG (STU:AOX) Business Description
alstria office REIT-AG is a real estate investment trust engaged in the acquisition, management, refurbishment, and sale of office properties throughout Germany. The vast majority of the company's real estate portfolio is dispersed between the German regions of Rhine-Ruhr, Hamburg, Rhine-Main, and Stuttgart. The company derives nearly all of its revenue in the form of rental income from the leasing of its properties. alstria's largest tenants in terms of annual rental revenue include a variety of local government, automotive, telecommunications, and insurance entities. it focuses on a small number of large tenants that account for the majority of its rental income.
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