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.
Construtora Tenda's Sloan Ratio for the quarter that ended in Dec. 2023 was -6.79%.
As of Dec. 2023, Construtora Tenda has a Sloan Ratio of -6.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Construtora Tenda Sloan Ratio % Historical Data
The historical data trend for Construtora Tenda'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 Construtora Tenda's Sloan Ratio %
For the Real Estate - Development subindustry, Construtora Tenda'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.
Construtora Tenda's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Construtora Tenda's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Construtora Tenda's Sloan Ratio % falls into.
Construtora Tenda 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.
Construtora Tenda's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Construtora Tenda's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -41.902 (Mar. 2023 ) + -10.535 (Jun. 2023 ) + -23.765 (Sep. 2023 ) + -19.647 (Dec. 2023 ) = R$-96 Mil.
Construtora Tenda's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -0.997 (Mar. 2023 ) + -69.434 (Jun. 2023 ) + 27.142 (Sep. 2023 ) + 323.236 (Dec. 2023 ) = R$280 Mil.
Construtora Tenda's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -2.74 (Mar. 2023 ) + -13.868 (Jun. 2023 ) + -52.049 (Sep. 2023 ) + 1.289 (Dec. 2023 ) = R$-67 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.
Construtora Tenda (BSP:TEND3) 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, Construtora Tenda has a Sloan Ratio of -6.79%, indicating the company is in the safe zone and there is no funny business with accruals.
Construtora Tenda Sloan Ratio % Related Terms
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Construtora Tenda (BSP:TEND3) Business Description
Construtora Tenda SA is engaged in the performance of general construction works, real estate development, real estate purchase, and sale, the provision of general construction management services, the intermediation of the sale of consortium shares, and the holding of interests in other companies. The SPEs are exclusively engaged in real estate operations and are linked to specific projects. The company concentrates its activities in nine metropolitan regions of Brazil, uniquely operating within bracket 2 of the Casa Verde e Amarela federal government housing program. The company focuses on affordable housing which allows it to pursue scale gains and continuous improvement. It has a single SKU for no-elevator buildings.
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