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Lennar Sloan Ratio %

: 5.79% (As of Feb. 2022)
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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.

Lennar's Sloan Ratio for the quarter that ended in Feb. 2022 was 5.79%.

As of Feb. 2022, Lennar has a Sloan Ratio of 5.79%, indicating the company is in the safe zone and there is no funny business with accruals.


Lennar Sloan Ratio % Historical Data

The historical data trend for Lennar'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.

* Premium members only.

Lennar Annual Data
Trend Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20 Nov21
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.59 2.09 1.18 -4.83 6.03

Lennar Quarterly Data
May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22
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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.42 -0.19 5.07 6.03 5.79

Competitive Comparison

For the Residential Construction subindustry, Lennar'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.

   

Lennar Sloan Ratio % Distribution

For the Homebuilding & Construction industry and Consumer Cyclical sector, Lennar's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Lennar's Sloan Ratio % falls into.



Lennar 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.

Lennar's Sloan Ratio for the fiscal year that ended in Nov. 2021 is calculated as

Sloan Ratio=(Net Income (A: Nov. 2021 )-Cash Flow from Operations (A: Nov. 2021 )
-Cash Flow from Investing (A: Nov. 2021 ))/Total Assets (A: Nov. 2021 )
=(4430.111-2532.774
--105.086)/33207.778
=6.03%

Lennar's Sloan Ratio for the quarter that ended in Feb. 2022 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM})
-Cash Flow from Investing (TTM))/Total Assets (Q: Feb. 2022 )
=(3932.323-2075.035
--31.726)/32635.252
=5.79%

Lennar's Net Income for the trailing twelve months (TTM) ended in Feb. 2022 was 831.363 (May. 2021 ) + 1406.888 (Aug. 2021 ) + 1190.491 (Nov. 2021 ) + 503.581 (Feb. 2022 ) = $3,932 Mil.
Lennar's Cash Flow from Operations for the trailing twelve months (TTM) ended in Feb. 2022 was 332.612 (May. 2021 ) + 594.227 (Aug. 2021 ) + 1220.427 (Nov. 2021 ) + -72.231 (Feb. 2022 ) = $2,075 Mil.
Lennar's Cash Flow from Investing for the trailing twelve months (TTM) ended in Feb. 2022 was 43.28 (May. 2021 ) + -81.096 (Aug. 2021 ) + 26.082 (Nov. 2021 ) + -19.992 (Feb. 2022 ) = $-32 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.


Lennar  (NYSE:LEN) 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 Feb. 2022, Lennar has a Sloan Ratio of 5.79%, indicating the company is in the safe zone and there is no funny business with accruals.


Lennar Sloan Ratio % Related Terms

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Lennar Business Description

Lennar logo
Industry
Address
700 Northwest 107th Avenue, Miami, FL, USA, 33172
After merging with CalAtlantic in February 2018, Lennar has become the largest public homebuilder (by revenue) in the United States. The company's homebuilding operations target first-time, move-up, and active adult homebuyers mainly under the Lennar brand name. Lennar's financial-services segment provides mortgage financing and related services to its homebuyers. Miami-based Lennar is also involved in multifamily construction and has invested in numerous housing-related technology startups.
Executives
Bessette Diane J officer: VP/CFO/Treasurer LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Collins David M officer: Controller LENNAR CORPORATION 700 NW 107 AVENUE STE 400 MIAMI FL 33172
Jaffe Jonathan M director, officer: President LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Mccall Jeffrey Joseph officer: Executive Vice President 26 TECHNOLOGY DRIVE IRVINE CA 92618
Stowell Scott D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: STOWELL SCOTT D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Gerard Steven L director P.O. BOX 554 MILWAUKEE WI 53201-0554
Bolotin Irving director LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Sustana Mark officer: VP/General Counsel/Secretary LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Beckwitt Richard director, officer: Chief Executive Officer LENNAR CORPORATION 700 NW 107 AVE 4TH FLR MIAMI FL 33172
Olivera Armando J director C/O FLUOR CORPORATION 6700 LAS COLINAS BLVD IRVING TX 75039
Gilliam Theron I director GMS INC. 100 CRESCENT CENTRE PARKWAY, SUITE 800 TUCKER 2Q 30084
Mcclure Teri P director 55 GLENLAKE PARKWAY NE ATLANTA GA 30328
Sonnenfeld Jeffrey director 14 WALL ST 13TH FL NEW YORK NY 10005
Hudson Sherrill W director 201 SOUTH BISCAYNE BOULEVARD 34TH FLOOR, MIAMI CENTER MIAMI FL 33131
Lapidus Sidney director 466 LEXINGTON AVENUE FLOOR NEW YORK NY 10017

Lennar Headlines

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