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.
Sun Communities's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.50%.
As of Dec. 2023, Sun Communities has a Sloan Ratio of -0.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Sun Communities Sloan Ratio % Historical Data
The historical data trend for Sun Communities'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 Sun Communities's Sloan Ratio %
For the REIT - Residential subindustry, Sun Communities'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.
Sun Communities's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Sun Communities's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sun Communities's Sloan Ratio % falls into.
Sun Communities 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.
Sun Communities's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sun Communities's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -30.1 (Mar. 2023 ) + 89.8 (Jun. 2023 ) + 163.1 (Sep. 2023 ) + -436.1 (Dec. 2023 ) = $-213 Mil.
Sun Communities's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 194.5 (Mar. 2023 ) + 255.4 (Jun. 2023 ) + 223 (Sep. 2023 ) + 117.6 (Dec. 2023 ) = $791 Mil.
Sun Communities's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -321.9 (Mar. 2023 ) + -259.9 (Jun. 2023 ) + -236 (Sep. 2023 ) + -101.7 (Dec. 2023 ) = $-920 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.
Sun Communities (NYSE:SUI) 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 Dec. 2023, Sun Communities has a Sloan Ratio of -0.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Sun Communities Sloan Ratio % Related Terms
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Sun Communities (Sun Communities) Business Description
Sun Communities is a residential REIT that focuses on owning manufactured housing, residential vehicle communities, and marinas. The company currently owns a portfolio of 670 properties, which includes 353 manufactured housing communities, 182 residential vehicle communities, and 135 marina properties. Sun targets owning properties that are desirable as second homes or vacation properties with nearly 50% of the portfolio located in either Florida or Michigan near major bodies of water.
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