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.
Anworth Mortgage Asset's Sloan Ratio for the quarter that ended in Dec. 2020 was -102.13%.
Warning Sign:
When Sloan Ratio (-102.13)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2020, Anworth Mortgage Asset has a Sloan Ratio of -102.13%, indicating earnings are more likely to be made up of accruals.
Anworth Mortgage Asset 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 Anworth Mortgage Asset's Sloan Ratio %
For the REIT - Mortgage subindustry, Anworth Mortgage Asset'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.
Anworth Mortgage Asset's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Anworth Mortgage Asset's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Anworth Mortgage Asset's Sloan Ratio % falls into.
Anworth Mortgage Asset 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.
Anworth Mortgage Asset's Sloan Ratio for the fiscal year that ended in Dec. 2020 is calculated as
Anworth Mortgage Asset's Net Income for the trailing twelve months (TTM) ended in Dec. 2020 was -185.821 (Mar. 2020 ) + 36.839 (Jun. 2020 ) + 21.869 (Sep. 2020 ) + 23.419 (Dec. 2020 ) = $-103.69 Mil.
Anworth Mortgage Asset's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2020 was 39.797 (Mar. 2020 ) + 11.925 (Jun. 2020 ) + 6.326 (Sep. 2020 ) + 4.005 (Dec. 2020 ) = $62.05 Mil.
Anworth Mortgage Asset's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2020 was 1300.147 (Mar. 2020 ) + 757.357 (Jun. 2020 ) + 227.444 (Sep. 2020 ) + -15.441 (Dec. 2020 ) = $2,269.51 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.
Anworth Mortgage Asset (NYSE:ANHpA.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 Dec. 2020, Anworth Mortgage Asset has a Sloan Ratio of -102.13%, indicating earnings are more likely to be made up of accruals.
Anworth Mortgage Asset Sloan Ratio % Related Terms
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Anworth Mortgage Asset (Anworth Mortgage Asset) Business Description
Anworth Mortgage Asset Corp is engaged in the business of investment, financing, & management of a leveraged portfolio of residential mortgage-backed securities & residential mortgage loans which includes different types of investments such as Agency mortgage-backed securities, Non-agency mortgage-backed securities, & Residential mortgage loans through consolidated securitization trusts. Agency MBS include residential mortgage pass-through certificates or CMOs in which the principal and interest payments are guaranteed by a government-sponsored enterprise. Non-Agency MBS are issued by companies that are not guaranteed by federally sponsored enterprises, and the company finances its residential mortgage loans through asset-backed securities issued by the consolidated securitization trusts.
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