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.
KKR Real Estate Finance Trust's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.65%.
As of Dec. 2023, KKR Real Estate Finance Trust has a Sloan Ratio of -2.65%, indicating the company is in the safe zone and there is no funny business with accruals.
KKR Real Estate Finance Trust Sloan Ratio % Historical Data
The historical data trend for KKR Real Estate Finance Trust'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.
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KKR Real Estate Finance Trust Annual Data
Trend
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Dec22
Dec23
Sloan Ratio %
18.28
-3.01
23.17
13.77
-2.65
KKR Real Estate Finance Trust Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
Sloan Ratio %
13.77
7.46
-3.20
1.52
-2.65
Competitive Comparison
For the REIT - Mortgage subindustry, KKR Real Estate Finance 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.
KKR Real Estate Finance Trust Sloan Ratio % Distribution
For the REITs industry and Real Estate sector, KKR Real Estate Finance Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where KKR Real Estate Finance Trust's Sloan Ratio % falls into.
KKR Real Estate Finance 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.
KKR Real Estate Finance Trust's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
KKR Real Estate Finance Trust's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -25.077 (Mar. 2023 ) + -20.028 (Jun. 2023 ) + 27.141 (Sep. 2023 ) + -12.887 (Dec. 2023 ) = $-30.9 Mil.
KKR Real Estate Finance Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 41.635 (Mar. 2023 ) + 35.473 (Jun. 2023 ) + 41.766 (Sep. 2023 ) + 36.841 (Dec. 2023 ) = $155.7 Mil.
KKR Real Estate Finance Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -113.08 (Mar. 2023 ) + 172.476 (Jun. 2023 ) + -122.382 (Sep. 2023 ) + 76.473 (Dec. 2023 ) = $13.5 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.
KKR Real Estate Finance Trust (NYSE:KREF) 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, KKR Real Estate Finance Trust has a Sloan Ratio of -2.65%, indicating the company is in the safe zone and there is no funny business with accruals.
KKR Real Estate Finance Trust Sloan Ratio % Related Terms
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KKR Real Estate Finance Trust (KKR Real Estate Finance Trust) Business Description
KKR Real Estate Finance Trust Inc is a real estate finance company that focuses on originating and acquiring senior mortgage loans secured by CRE assets. The investment is to originate or acquire senior mortgage loans collateralized by institutional-quality CRE assets that are owned and operated by experienced and well-capitalized sponsors and located in liquid markets with underlying fundamentals. KKR manages investments across multiple asset classes, including private equity, real estate, energy, infrastructure, credit, and hedge funds. The company's investment objective is capital preservation and generating attractive risk-adjusted returns for its stockholders over the long term, through dividends.
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