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.
Douglas Emmett's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.45%.
As of Dec. 2023, Douglas Emmett has a Sloan Ratio of -2.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Douglas Emmett Sloan Ratio % Historical Data
The historical data trend for Douglas Emmett'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 Douglas Emmett's Sloan Ratio %
For the REIT - Office subindustry, Douglas Emmett'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.
Douglas Emmett's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Douglas Emmett's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Douglas Emmett's Sloan Ratio % falls into.
Douglas Emmett 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.
Douglas Emmett's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Douglas Emmett's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 18.373 (Mar. 2023 ) + -7.262 (Jun. 2023 ) + -13.362 (Sep. 2023 ) + -40.455 (Dec. 2023 ) = $-43 Mil.
Douglas Emmett's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 145.474 (Mar. 2023 ) + 96.249 (Jun. 2023 ) + 90.486 (Sep. 2023 ) + 94.755 (Dec. 2023 ) = $427 Mil.
Douglas Emmett's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -51.403 (Mar. 2023 ) + -68.531 (Jun. 2023 ) + -60.439 (Sep. 2023 ) + -53.217 (Dec. 2023 ) = $-234 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.
Douglas Emmett (NYSE:DEI) 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, Douglas Emmett has a Sloan Ratio of -2.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Douglas Emmett Sloan Ratio % Related Terms
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Douglas Emmett (Douglas Emmett) Business Description
Douglas Emmett Inc is a real estate investment trust that acquires, develops, and manages office and multifamily properties in Los Angeles, California and Honolulu, Hawaii in the U.S. The company focuses on owning assets in communities with large supply constraints, such as the affluent neighborhoods of Los Angeles. The vast majority of Douglas Emmett's real estate portfolio is comprised of office buildings in Los Angeles. Most of these assets are located in the areas of Sherman Oaks, Woodland Hills, and Beverly Hills in terms of total square feet. Douglas Emmett derives nearly all of its income in the form of rental revenue from tenants. The vast majority of this also comes from its Los Angeles office buildings. The company's major tenants are legal, financial, and entertainment firms.
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