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.
* 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 Rexford Industrial Realty's Sloan Ratio %
For the REIT - Industrial subindustry, Rexford Industrial Realty'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.
Rexford Industrial Realty's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Rexford Industrial Realty's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rexford Industrial Realty's Sloan Ratio % falls into.
Rexford Industrial Realty 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.
Rexford Industrial Realty's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Rexford Industrial Realty's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 54.193 (Jun. 2023 ) + 58.966 (Sep. 2023 ) + 64.351 (Dec. 2023 ) + 61.371 (Mar. 2024 ) = $238.9 Mil.
Rexford Industrial Realty's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 83.183 (Jun. 2023 ) + 108.872 (Sep. 2023 ) + 115.987 (Dec. 2023 ) + 133.756 (Mar. 2024 ) = $441.8 Mil.
Rexford Industrial Realty's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -129.831 (Jun. 2023 ) + -377.071 (Sep. 2023 ) + -403.666 (Dec. 2023 ) + -1153.782 (Mar. 2024 ) = $-2,064.4 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.
Rexford Industrial Realty (NYSE:REXR) 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 Mar. 2024, Rexford Industrial Realty has a Sloan Ratio of 15.03%, indicating there is a warning stage of accrual build up.
Rexford Industrial Realty Sloan Ratio % Related Terms
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Rexford Industrial Realty (Rexford Industrial Realty) Business Description
Rexford Industrial Realty Inc is a real estate investment trust primarily engaged in the acquisition, ownership, and operation of industrial properties in Southern California. The company mainly focuses on leasing facilities in infill markets or relatively wealthy urban areas with a general scarcity of developable land. The vast majority of Rexford's real estate portfolio, in terms of square footage, revenue generation, and total value, comprises light manufacturing and distribution warehouse buildings located in Los Angeles and San Diego. The company's largest tenants are firms in the wholesale and retail, light manufacturing, industrial equipment, and food and beverage industries.
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