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.
As of Jun. 2023, Australian REITome Fund has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Australian REITome Fund Sloan Ratio % Historical Data
* 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 Australian REITome Fund's Sloan Ratio %
For the REIT - Specialty subindustry, Australian REITome Fund'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.
Australian REITome Fund's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Australian REITome Fund's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Australian REITome Fund's Sloan Ratio % falls into.
Australian REITome Fund 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.
Australian REITome Fund's Sloan Ratio for the fiscal year that ended in Dec. 2022 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Australian REITome Fund's Net Income for the trailing twelve months (TTM) ended in Jun. 2023 was 0.643 (Dec. 2022 ) + -0.403 (Jun. 2023 ) = C$0.24 Mil.
Australian REITome Fund's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2023 was 0.18 (Dec. 2022 ) + 0.309 (Jun. 2023 ) = C$0.49 Mil.
Australian REITome Fund's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2023 was 0 (Dec. 2022 ) + 0 (Jun. 2023 ) = C$0.00 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.
Australian REITome Fund (TSX:HRR.UN) 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. 2023, Australian REITome Fund has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Australian REITome Fund Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Australian REITome Fund's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Australian REITome Fund (TSX:HRR.UN) Business Description
Australian REIT Income Fund invests in an actively managed portfolio comprised primarily of equity securities issued by Australian real estate investment trusts and issuers principally engaged in the real estate industry in Australia. The Fund's investment objectives are to provide unitholders with stable monthly cash distributions and the opportunity for capital appreciation. The Fund is offering Series A units and Series F units.
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