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.
Resource America's Sloan Ratio for the quarter that ended in Jun. 2016 was -9.71%.
As of Jun. 2016, Resource America has a Sloan Ratio of -9.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Resource America Sloan Ratio % Historical Data
The historical data trend for Resource America'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.
Competitive Comparison of Resource America's Sloan Ratio %
For the Real Estate Services subindustry, Resource America'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.
Resource America's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Resource America's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Resource America's Sloan Ratio % falls into.
Resource America 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.
Resource America's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Resource America's Net Income for the trailing twelve months (TTM) ended in Jun. 2016 was -1.1 (Sep. 2015 ) + 8.605 (Dec. 2015 ) + 3.037 (Mar. 2016 ) + -0.272 (Jun. 2016 ) = $10.27 Mil.
Resource America's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 23.109 (Sep. 2015 ) + 10.331 (Dec. 2015 ) + 2.714 (Mar. 2016 ) + 15.253 (Jun. 2016 ) = $51.41 Mil.
Resource America's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2016 was -23.527 (Sep. 2015 ) + 12.149 (Dec. 2015 ) + -3.636 (Mar. 2016 ) + -5.606 (Jun. 2016 ) = $-20.62 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.
Resource America (NAS:REXI) 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 Jun. 2016, Resource America has a Sloan Ratio of -9.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Resource America Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Resource America's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Resource America (Resource America) Business Description
Resource America Inc is Delaware Corporation. It is an asset management company that uses industry specific expertise to evaluate, originate, service and manage investment opportunities through its real estate, commercial finance and financial fund management subsidiaries. As a specialized asset manager, it develops investment funds for outside investors for which the Company provides asset management services, typically under long-term management arrangements either through a contract with, or as the manager or general partner of, its sponsored investment funds. In its real estate segment, it focuses on acquiring and managing a diversified portfolio of commercial real estate and real estate related debt that has been significantly discounted due to the effects of current economic conditions and high levels of leverage. In its financial fund management segment, it focuses on the he sponsorship and management of issuers of collateralized loan and debt obligations. The Company has operations in New York, Philadelphia, Los Angeles, London, Singapore and Sydney. In its real estate operations, the Company concentrates on the ownership, operation and management of multifamily and commercial real estate and real estate mortgage loans including whole mortgage loans, first priority interests in commercial mortgage loans, known as A notes, subordinated interests in first mortgage loans, known as B notes, mezzanine loans, investments in discounted and distressed real estate loans and investments in value-added properties. The Company faces competition from other asset holding companies in various areas.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
REXI has been successfully added to your 