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RAIT Financial Trust (RAIT Financial Trust) Sloan Ratio %

: -67.23% (As of Jun. 2019)
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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.

RAIT Financial Trust's Sloan Ratio for the quarter that ended in Jun. 2019 was -67.23%.

Warning Sign:

When Sloan Ratio (-87.38)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Jun. 2019, RAIT Financial Trust has a Sloan Ratio of -67.23%, indicating earnings are more likely to be made up of accruals.


RAIT Financial Trust Sloan Ratio % Historical Data

The historical data trend for RAIT Financial Trust'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.

RAIT Financial Trust Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
Sloan Ratio %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.43 8.04 -28.81 -22.06 -87.38

RAIT Financial Trust Quarterly Data
Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19
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 -41.57 -59.03 -87.38 -75.08 -67.23

Competitive Comparison

For the REIT - Diversified subindustry, RAIT Financial 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.


RAIT Financial Trust Sloan Ratio % Distribution

For the REITs industry and Real Estate sector, RAIT Financial Trust's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where RAIT Financial Trust's Sloan Ratio % falls into.



RAIT Financial 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.

RAIT Financial Trust's Sloan Ratio for the fiscal year that ended in Dec. 2018 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2018 )-Cash Flow from Operations (A: Dec. 2018 )
-Cash Flow from Investing (A: Dec. 2018 ))/Total Assets (A: Dec. 2018 )
=(-123.458-7.401
-510.315)/733.764
=-87.38%

RAIT Financial Trust's Sloan Ratio for the quarter that ended in Jun. 2019 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Jun. 2019 )
=(-44.104--28.36
-375.923)/582.578
=-67.23%

RAIT Financial Trust's Net Income for the trailing twelve months (TTM) ended in Jun. 2019 was -21.038 (Sep. 2018 ) + -17.692 (Dec. 2018 ) + -6.201 (Mar. 2019 ) + 0.827 (Jun. 2019 ) = $-44.10 Mil.
RAIT Financial Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2019 was -17.49 (Sep. 2018 ) + -2.83 (Dec. 2018 ) + -5.699 (Mar. 2019 ) + -2.341 (Jun. 2019 ) = $-28.36 Mil.
RAIT Financial Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2019 was 141.827 (Sep. 2018 ) + 114.199 (Dec. 2018 ) + 55.611 (Mar. 2019 ) + 64.286 (Jun. 2019 ) = $375.92 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.


RAIT Financial Trust  (OTCPK:RASJQ.PFD) 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. 2019, RAIT Financial Trust has a Sloan Ratio of -67.23%, indicating earnings are more likely to be made up of accruals.


RAIT Financial Trust Sloan Ratio % Related Terms

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RAIT Financial Trust (RAIT Financial Trust) Business Description

Traded in Other Exchanges
N/A
Address
100 North 18th Street, Two Logan Square, 23rd Floor, Philadelphia, PA, USA, 19103
RAIT Financial Trust is a United States-based real estate investment trust. Through its subsidiaries, the company invests in and manages a portfolio of commercial real estate (CRE) loans and properties. It operates in the business segment of real estate lending, owning and managing segment which focuses on lending, owning and managing commercial real estate assets throughout the United States. The form of the company's investments ranged from first mortgage loans to equity ownership of a commercial real estate property. It derives main revenue in the form of property income.

RAIT Financial Trust (RAIT Financial Trust) Headlines

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