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Essential Properties Realty Trust Sloan Ratio %

: 22.16% (As of Jun. 2020)
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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.

Essential Properties Realty Trust's Sloan Ratio for the quarter that ended in Jun. 2020 was 22.16%.

Warning Sign:

When Sloan Ratio (28.4)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Jun. 2020, Essential Properties Realty Trust has a Sloan Ratio of 22.16%, indicating earnings are more likely to be made up of accruals.


Essential Properties Realty Trust Sloan Ratio % Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Essential Properties Realty Trust Annual Data
Dec16 Dec17 Dec18 Dec19
Sloan Ratio % 0.00 47.57 31.25 28.40

Essential Properties Realty Trust Quarterly Data
Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20
Sloan Ratio % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 25.98 26.06 28.40 26.11 22.16

Competitive Comparison
* 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.


Essential Properties Realty Trust Sloan Ratio % Distribution

* The bar in red indicates where Essential Properties Realty Trust's Sloan Ratio % falls into.



Essential Properties 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.

Essential Properties Realty Trust's Sloan Ratio for the fiscal year that ended in Dec. 2019 is calculated as

Sloan Ratio=(Net Income (A: )-Cash Flow from Operations (A: Dec. 2019 )
-Cash Flow from Investing (A: Dec. 2019 ))/Total Assets (A: Dec. 2019 )
=(41.844-88.568
--607.839)/1975.447
=28.40%

Essential Properties Realty Trust's Sloan Ratio for the quarter that ended in Jun. 2020 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM})
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2020 )
=(52.106-89.185
--535.03)/2247.242
=22.16%

Essential Properties Realty Trust's Net Income for the trailing twelve months (TTM) ended in Jun. 2020 was 13.245 (Sep. 2019 ) + 14.521 (Dec. 2019 ) + 13.959 (Mar. 2020 ) + 10.381 (Jun. 2020 ) = $52.1 Mil.
Essential Properties Realty Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2020 was 25.074 (Sep. 2019 ) + 27.657 (Dec. 2019 ) + 26.349 (Mar. 2020 ) + 10.105 (Jun. 2020 ) = $89.2 Mil.
{{stock_data.stock.company}'s Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2020 was -160.236 (Sep. 2019 ) + -182.428 (Dec. 2019 ) + -148.182 (Mar. 2020 ) + -44.184 (Jun. 2020 ) = $-535.0 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Essential Properties Realty Trust  (NYSE:EPRT) 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.

According to How to Beat the Market with the Sloan Ratio:

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 Jun. 2020, Essential Properties Realty Trust has a Sloan Ratio of 22.16%, indicating earnings are more likely to be made up of accruals.


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