What is Granite Point Mortgage Trust Sloan Ratio %?
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.
* 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 Granite Point Mortgage Trust's Sloan Ratio %
For the REIT - Mortgage subindustry, Granite Point Mortgage 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.
Granite Point Mortgage Trust's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Granite Point Mortgage Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Granite Point Mortgage Trust's Sloan Ratio % falls into.
Granite Point Mortgage 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.
Granite Point Mortgage Trust's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -33.829 (Mar. 2023 ) + 5.041 (Jun. 2023 ) + -20.937 (Sep. 2023 ) + -13.473 (Dec. 2023 ) = $-63.20 Mil.
Granite Point Mortgage Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 10.464 (Mar. 2023 ) + 15.927 (Jun. 2023 ) + 16.025 (Sep. 2023 ) + 9.68 (Dec. 2023 ) = $52.10 Mil.
Granite Point Mortgage Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 19.508 (Mar. 2023 ) + 211.797 (Jun. 2023 ) + 156.654 (Sep. 2023 ) + 173.47 (Dec. 2023 ) = $561.43 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.
Granite Point Mortgage Trust (NYSE:GPMT) 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, Granite Point Mortgage Trust has a Sloan Ratio of -23.77%, indicating there is a warning stage of accrual build up.
Granite Point Mortgage Trust Sloan Ratio % Related Terms
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Granite Point Mortgage Trust (Granite Point Mortgage Trust) Business Description
Granite Point Mortgage Trust Inc focuses on directly originating, investing in, and managing senior floating-rate commercial mortgage loans and other debt and debt-like commercial real estate investments. The company constructs its investment portfolio on a loan-by-loan basis, emphasizing rigorous credit underwriting, selectivity, and diversification, and assesses each investment from a fundamental value perspective relative to other opportunities available in the market. It typically provides intermediate-term bridge or transitional financing for a variety of purposes, including acquisitions, recapitalizations, refinancing, and a range of business plans, including lease-up, renovation, repositioning, and repurposing of the property.
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