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 Hudson Pacific Properties's Sloan Ratio %
For the REIT - Office subindustry, Hudson Pacific Properties'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.
Hudson Pacific Properties's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Hudson Pacific Properties's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Hudson Pacific Properties's Sloan Ratio % falls into.
Hudson Pacific Properties 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.
Hudson Pacific Properties's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Hudson Pacific Properties's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -14.954 (Mar. 2023 ) + -31.312 (Jun. 2023 ) + -33.069 (Sep. 2023 ) + -94.551 (Dec. 2023 ) = $-173.89 Mil.
Hudson Pacific Properties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 92.516 (Mar. 2023 ) + 59.167 (Jun. 2023 ) + 71.355 (Sep. 2023 ) + 9.218 (Dec. 2023 ) = $232.26 Mil.
Hudson Pacific Properties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 10.499 (Mar. 2023 ) + -103.91 (Jun. 2023 ) + -31.094 (Sep. 2023 ) + 592.346 (Dec. 2023 ) = $467.84 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.
Hudson Pacific Properties (NYSE:HPPpBCL.PFD) 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, Hudson Pacific Properties has a Sloan Ratio of -10.55%, indicating there is a warning stage of accrual build up.
Hudson Pacific Properties Sloan Ratio % Related Terms
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Hudson Pacific Properties (Hudson Pacific Properties) Business Description
Hudson Pacific Properties Inc is a real estate investment trust that acquires, operates, and owns office buildings and media and entertainment properties, such as sound stages, on America's West Coast. The company focuses on developed, urban markets in Northern California, Southern California, and the Pacific Northwest. In terms of total square footage, the vast majority of Hudson Pacific's real estate portfolio is composed of office properties located in the Greater Seattle, San Francisco, and Los Angeles areas. The company operates in two reportable segments; office properties & related operations; and studio properties & related operations. The majority of revenue is derived from the office properties & related operations segment.
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