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 Nov. 2023, Daiwa Office Investment has a Sloan Ratio of -0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Daiwa Office Investment 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 Daiwa Office Investment's Sloan Ratio %
For the REIT - Office subindustry, Daiwa Office Investment'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.
Daiwa Office Investment's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Daiwa Office Investment's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Daiwa Office Investment's Sloan Ratio % falls into.
Daiwa Office Investment 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.
Daiwa Office Investment's Sloan Ratio for the fiscal year that ended in Nov. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Daiwa Office Investment's Net Income for the trailing twelve months (TTM) ended in Nov. 2023 was 7099.759 (May. 2023 ) + 6192.169 (Nov. 2023 ) = 円13,292 Mil.
Daiwa Office Investment's Cash Flow from Operations for the trailing twelve months (TTM) ended in Nov. 2023 was 14888.329 (May. 2023 ) + 7683.693 (Nov. 2023 ) = 円22,572 Mil.
Daiwa Office Investment's Cash Flow from Investing for the trailing twelve months (TTM) ended in Nov. 2023 was -2346.73 (May. 2023 ) + -2224.726 (Nov. 2023 ) = 円-4,571 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.
Daiwa Office Investment (TSE:8976) 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 Nov. 2023, Daiwa Office Investment has a Sloan Ratio of -0.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Daiwa Office Investment Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Daiwa Office Investment's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Daiwa Office Investment (TSE:8976) Business Description
Daiwa Office Investment Corp is a real estate investment trust focused on acquiring, managing, and leasing office properties located in the Five Central Wards of Tokyo. The vast majority of the company's real estate portfolio is composed of office buildings fairly evenly distributed between Tokyo's Five Central Wards in terms of total value. Daiwa derives nearly all of its income in the form of rental revenue from leasing its properties. The firm has a varied tenant base from a number of industries, including the entertainment, retail, insurance, and food and beverage companies.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
TSE:8976 has been successfully added to your 