What is Alexandria Real Estate Equities Sloan Ratio %?
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 Mar. 2024, Alexandria Real Estate Equities has a Sloan Ratio of 2.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Alexandria Real Estate Equities 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.
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Alexandria Real Estate Equities Sloan Ratio % Chart
Competitive Comparison of Alexandria Real Estate Equities's Sloan Ratio %
For the REIT - Office subindustry, Alexandria Real Estate Equities'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.
Alexandria Real Estate Equities's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Alexandria Real Estate Equities's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Alexandria Real Estate Equities's Sloan Ratio % falls into.
Alexandria Real Estate Equities 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.
Alexandria Real Estate Equities's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 89.937 (Jun. 2023 ) + 24.269 (Sep. 2023 ) + -88.429 (Dec. 2023 ) + 170.545 (Mar. 2024 ) = $196 Mil.
Alexandria Real Estate Equities's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 478.473 (Jun. 2023 ) + 417.89 (Sep. 2023 ) + 428.617 (Dec. 2023 ) + 341.157 (Mar. 2024 ) = $1,666 Mil.
Alexandria Real Estate Equities's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -394.436 (Jun. 2023 ) + -676.455 (Sep. 2023 ) + -390.063 (Dec. 2023 ) + -894.854 (Mar. 2024 ) = $-2,356 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.
Alexandria Real Estate Equities (NYSE:ARE) 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, Alexandria Real Estate Equities has a Sloan Ratio of 2.35%, indicating the company is in the safe zone and there is no funny business with accruals.
Alexandria Real Estate Equities Sloan Ratio % Related Terms
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Alexandria Real Estate Equities (Alexandria Real Estate Equities) Business Description
Alexandria Real Estate Equities Inc is an urban office real estate investment trust (REIT). It is engaged in the business of providing space for lease to life science, agtech, and technology tenants. The company has established a significant market presence in key locations, including Greater Boston, the San Francisco Bay Area, New York City, San Diego, Seattle, Maryland, and Research Triangle. Alexandria has a longstanding and proven track record of developing Class A properties clustered in urban life science, agtech, and technology campuses that provide tenants with highly dynamic and collaborative environments. Alexandria also provides strategic capital to transformative life science, agtech, and technology companies through venture capital platform.
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