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, NexPoint Residential Trust has a Sloan Ratio of -4.95%, indicating the company is in the safe zone and there is no funny business with accruals.
NexPoint Residential 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 NexPoint Residential Trust's Sloan Ratio %
For the REIT - Residential subindustry, NexPoint Residential 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.
NexPoint Residential Trust's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, NexPoint Residential Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where NexPoint Residential Trust's Sloan Ratio % falls into.
NexPoint Residential 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.
NexPoint Residential Trust's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -3.883 (Mar. 2023 ) + -3.953 (Jun. 2023 ) + 33.749 (Sep. 2023 ) + 18.351 (Dec. 2023 ) = $44.3 Mil.
NexPoint Residential Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 27.923 (Mar. 2023 ) + 25.992 (Jun. 2023 ) + 27.843 (Sep. 2023 ) + 14.823 (Dec. 2023 ) = $96.6 Mil.
NexPoint Residential Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -16.505 (Mar. 2023 ) + -19.857 (Jun. 2023 ) + 54.33 (Sep. 2023 ) + 33.955 (Dec. 2023 ) = $51.9 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.
NexPoint Residential Trust (NYSE:NXRT) 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, NexPoint Residential Trust has a Sloan Ratio of -4.95%, indicating the company is in the safe zone and there is no funny business with accruals.
NexPoint Residential Trust Sloan Ratio % Related Terms
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NexPoint Residential Trust (NexPoint Residential Trust) Business Description
NexPoint Residential Trust Inc is an us-based real estate investment trust company. Its company's investment objectives are to maximize the cash flow and value of properties owned, acquire properties with cash flow growth potential, provide quarterly cash distributions, and achieve long-term capital appreciation for stockholders. The company seeks to achieve these objectives through targeted management and a capex value-add program. It focuses on acquiring multifamily properties in markets with attractive job growth and household formation fundamentals primarily in the Southeastern and Southwestern United States. The company generates revenue from the rental of multifamily properties.
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