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.
Orix Jreit's Sloan Ratio for the quarter that ended in Aug. 2023 was 0.30%.
As of Aug. 2023, Orix Jreit has a Sloan Ratio of 0.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Orix Jreit Sloan Ratio % Historical Data
The historical data trend for Orix Jreit'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 Orix Jreit's Sloan Ratio %
For the REIT - Office subindustry, Orix Jreit'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.
Orix Jreit's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Orix Jreit's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Orix Jreit's Sloan Ratio % falls into.
Orix Jreit 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.
Orix Jreit's Sloan Ratio for the fiscal year that ended in Aug. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Orix Jreit's Net Income for the trailing twelve months (TTM) ended in Aug. 2023 was 11149 (Feb. 2023 ) + 7904 (Aug. 2023 ) = 円19,053 Mil.
Orix Jreit's Cash Flow from Operations for the trailing twelve months (TTM) ended in Aug. 2023 was 16508 (Feb. 2023 ) + 20102 (Aug. 2023 ) = 円36,610 Mil.
Orix Jreit's Cash Flow from Investing for the trailing twelve months (TTM) ended in Aug. 2023 was -1040 (Feb. 2023 ) + -18550 (Aug. 2023 ) = 円-19,590 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.
Orix Jreit (TSE:8954) 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 Aug. 2023, Orix Jreit has a Sloan Ratio of 0.30%, indicating the company is in the safe zone and there is no funny business with accruals.
Orix Jreit Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Orix Jreit's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Orix Jreit Inc is a real estate investment trust engaged in the acquisition, ownership, and leasing of properties throughout Japan. In terms of asset acquisition price, the majority of the company's real estate portfolio comprises office buildings. Retail facilities and residential properties together also make up a considerable percentage of this portfolio. Orix JREIT's real estate assets are mostly located in the Greater Tokyo area, with those in the Central Wards of Tokyo representing the largest geographic segment in terms of property acquisition price. The company derives nearly all of its income in the form of rental revenue from tenants. Finance and real estate, transportation, and retail companies are Orix JREIT's major customers.
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