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 Dec. 2023, National Health Investors has a Sloan Ratio of -1.49%, indicating the company is in the safe zone and there is no funny business with accruals.
National Health Investors 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 National Health Investors's Sloan Ratio %
For the REIT - Healthcare Facilities subindustry, National Health Investors'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.
National Health Investors's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, National Health Investors's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where National Health Investors's Sloan Ratio % falls into.
National Health Investors 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.
National Health Investors's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
National Health Investors's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 34.484 (Mar. 2023 ) + 39.779 (Jun. 2023 ) + 29.346 (Sep. 2023 ) + 32.046 (Dec. 2023 ) = $135.7 Mil.
National Health Investors's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 31.048 (Mar. 2023 ) + 50.496 (Jun. 2023 ) + 49.703 (Sep. 2023 ) + 53.203 (Dec. 2023 ) = $184.5 Mil.
National Health Investors's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -27.521 (Mar. 2023 ) + 33.501 (Jun. 2023 ) + -19.946 (Sep. 2023 ) + 2.336 (Dec. 2023 ) = $-11.6 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.
National Health Investors (NYSE:NHI) 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, National Health Investors has a Sloan Ratio of -1.49%, indicating the company is in the safe zone and there is no funny business with accruals.
National Health Investors Sloan Ratio % Related Terms
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National Health Investors (National Health Investors) Business Description
National Health Investors Inc is a housing and medical facility REIT. The company operate through two reportable segments i.e. Real Estate Investments and Senior Housing Operating Portfolio. Real Estate Investments segment consists of real estate investments and lease, mortgage and other notes receivables in independent living facilities, assisted living facilities, entrance-fee communities, senior living campuses, skilled nursing facilities and a hospital. SHOP segment is comprised of two ventures that own the operations of independent living facilities. Company's revenues are derived from rental income, mortgage and other notes receivable interest income and resident fees and services.
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