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 Dec. 2023, Brookdale Senior Living has a Sloan Ratio of -4.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Brookdale Senior Living 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 Brookdale Senior Living's Sloan Ratio %
For the Medical Care Facilities subindustry, Brookdale Senior Living'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.
Brookdale Senior Living's Sloan Ratio % Distribution in the Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Brookdale Senior Living's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Brookdale Senior Living's Sloan Ratio % falls into.
Brookdale Senior Living 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.
Brookdale Senior Living's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Brookdale Senior Living's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -44.549 (Mar. 2023 ) + -4.51 (Jun. 2023 ) + -48.796 (Sep. 2023 ) + -91.156 (Dec. 2023 ) = $-189 Mil.
Brookdale Senior Living's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 24.042 (Mar. 2023 ) + 63.824 (Jun. 2023 ) + 45.763 (Sep. 2023 ) + 29.294 (Dec. 2023 ) = $163 Mil.
Brookdale Senior Living's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -62.019 (Mar. 2023 ) + -41.891 (Jun. 2023 ) + -31.837 (Sep. 2023 ) + 22.383 (Dec. 2023 ) = $-113 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.
Brookdale Senior Living (NYSE:BKD) 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. 2023, Brookdale Senior Living has a Sloan Ratio of -4.28%, indicating the company is in the safe zone and there is no funny business with accruals.
Brookdale Senior Living Sloan Ratio % Related Terms
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Brookdale Senior Living (Brookdale Senior Living) Business Description
Brookdale operates senior living communities throughout the United States. Private pay customers contribute the majority of its resident fees. Brookdale's retirement centers are targeted toward middle- to upper-income seniors, typically over the age of 75. It provides basic services, like meals and housekeeping, and supplemental-care services to assist residents with daily activities. Brookdale's assisted living communities offer 24-hour assistance with daily activities and include memory-care communities that are specifically designed for residents with Alzheimer's disease or other dementia. Its continuing-care retirement centers are large communities that accommodate all levels of physical ability and health. The majority of the firm's revenue comes from assisted living resident fees.
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