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.
As of Mar. 2019, MedEquities Realty Trust has a Sloan Ratio of 3.94%, indicating the company is in the safe zone and there is no funny business with accruals.
MedEquities Realty Trust Sloan Ratio % Historical Data
* 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 MedEquities Realty Trust's Sloan Ratio %
For the REIT - Healthcare Facilities subindustry, MedEquities Realty 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.
MedEquities Realty Trust's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, MedEquities Realty Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where MedEquities Realty Trust's Sloan Ratio % falls into.
MedEquities Realty 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.
MedEquities Realty Trust's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as
MedEquities Realty Trust's Net Income for the trailing twelve months (TTM) ended in Mar. 2019 was 3.232 (Jun. 2018 ) + -2.147 (Sep. 2018 ) + -0.591 (Dec. 2018 ) + 1.364 (Mar. 2019 ) = $1.86 Mil.
MedEquities Realty Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2019 was 5.229 (Jun. 2018 ) + 6.059 (Sep. 2018 ) + 4.339 (Dec. 2018 ) + 7.618 (Mar. 2019 ) = $23.25 Mil.
MedEquities Realty Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2019 was -32.014 (Jun. 2018 ) + -2.723 (Sep. 2018 ) + -8.095 (Dec. 2018 ) + -3.878 (Mar. 2019 ) = $-46.71 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.
MedEquities Realty Trust (NYSE:MRT) 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. 2019, MedEquities Realty Trust has a Sloan Ratio of 3.94%, indicating the company is in the safe zone and there is no funny business with accruals.
MedEquities Realty Trust Sloan Ratio % Related Terms
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MedEquities Realty Trust (MedEquities Realty Trust) Business Description
MedEquities Realty Trust Inc is a self-managed and self-administered company that invests in a diversified mix of healthcare properties and healthcare-related real estate debt investments. The company owns, acquires, and finances healthcare-related properties. It focuses on investing in various types of properties such as acute care hospitals, skilled nursing facilities, short-stay surgical and specialty hospitals, physician clinics, diagnostic facilities, outpatient surgery centers and others. Geographically, firm has its presence in the states of Texas, California and South Carolina.
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