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.
eXp World Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was -52.19%.
Warning Sign:
When sloan ratio (-53.05)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, eXp World Holdings has a Sloan Ratio of -52.19%, indicating earnings are more likely to be made up of accruals.
eXp World Holdings Sloan Ratio % Historical Data
The historical data trend for eXp World Holdings'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 eXp World Holdings's Sloan Ratio %
For the Real Estate Services subindustry, eXp World Holdings'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.
eXp World Holdings's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, eXp World Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where eXp World Holdings's Sloan Ratio % falls into.
eXp World Holdings 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.
eXp World Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
eXp World Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 9.422 (Jun. 2023 ) + 1.349 (Sep. 2023 ) + -21.197 (Dec. 2023 ) + -15.639 (Mar. 2024 ) = $-26 Mil.
eXp World Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 98.024 (Jun. 2023 ) + 22.348 (Sep. 2023 ) + 32.615 (Dec. 2023 ) + 60.654 (Mar. 2024 ) = $214 Mil.
eXp World Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -8.18 (Jun. 2023 ) + -1.356 (Sep. 2023 ) + -2.185 (Dec. 2023 ) + -5.245 (Mar. 2024 ) = $-17 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.
eXp World Holdings (NAS:EXPI) 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, eXp World Holdings has a Sloan Ratio of -52.19%, indicating earnings are more likely to be made up of accruals.
eXp World Holdings Sloan Ratio % Related Terms
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eXp World Holdings (eXp World Holdings) Business Description
eXp World Holdings Inc is a cloud-based residential real estate company. The company owns and operates a cloud-based real estate brokerage and a technology platform business that develops and uses immersive technologies that help businesses increase their effectiveness and reduce costs from operating in traditional brick and mortar office spaces. Its business categories include Real Estate Brokerage, Technology Products and Services, Title, Escrow, Settlement Services, and Mortgage Brokerage Services. The company mainly operates in the United States and Canada, and it also has operations in the United Kingdom, Australia, South Africa, France, India, Portugal, and Mexico, among others.
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