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.
BioMed Realty Trust's Sloan Ratio for the quarter that ended in Sep. 2015 was 2.41%.
As of Sep. 2015, BioMed Realty Trust has a Sloan Ratio of 2.41%, indicating the company is in the safe zone and there is no funny business with accruals.
BioMed Realty Trust Sloan Ratio % Historical Data
The historical data trend for BioMed Realty Trust'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 BioMed Realty Trust's Sloan Ratio %
For the REIT - Office subindustry, BioMed Realty Trust'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.
BioMed Realty Trust's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, BioMed Realty Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where BioMed Realty Trust's Sloan Ratio % falls into.
BioMed Realty Trust 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.
BioMed Realty Trust's Sloan Ratio for the fiscal year that ended in Dec. 2014 is calculated as
BioMed Realty Trust's Net Income for the trailing twelve months (TTM) ended in Sep. 2015 was 140.349 (Dec. 2014 ) + 17.345 (Mar. 2015 ) + 23.578 (Jun. 2015 ) + 28.203 (Sep. 2015 ) = $209.5 Mil.
BioMed Realty Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2015 was 73.987 (Dec. 2014 ) + 76.663 (Mar. 2015 ) + 55.485 (Jun. 2015 ) + 74.395 (Sep. 2015 ) = $280.5 Mil.
BioMed Realty Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2015 was 177.036 (Dec. 2014 ) + -154.243 (Mar. 2015 ) + -138.077 (Jun. 2015 ) + -111.24 (Sep. 2015 ) = $-226.5 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.
BioMed Realty Trust (NYSE:BMR) 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 Sep. 2015, BioMed Realty Trust has a Sloan Ratio of 2.41%, indicating the company is in the safe zone and there is no funny business with accruals.
BioMed Realty Trust Sloan Ratio % Related Terms
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BioMed Realty Trust (BioMed Realty Trust) Business Description
BioMed Realty Trust Inc, a Maryland corporation was formed on April 30, 2004 and commenced operations on August 11, 2004, after completing its initial public offering. The Company operates as a self-administered and self-managed real estate investment trust focused on acquiring, developing, owning, leasing and managing laboratory and office space for the life science industry mainly through its subsidiary, BioMed Realty, L.P., a Maryland limited partnership Its tenants mainly include biotechnology and pharmaceutical companies, scientific research institutions, government agencies and other entities involved in the life science industry. The Company's properties are generally located in markets with well established reputations as centers for scientific research, including Boston, San Diego, San Francisco, Seattle, Maryland, Pennsylvania and New York/ New Jersey. The Company faces competition from various entities for investment opportunities in properties for life science tenants, including other REITs, such as health care REITs and suburban office property REITs, pension funds, insurance companies, investment funds and companies, partnerships, and developers. The Company's properties are subject to various laws, ordinances and regulations, including regulations relating to common areas.
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