What is Western Asset Mortgage Capital Sloan Ratio %?
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 Sep. 2023, Western Asset Mortgage Capital has a Sloan Ratio of -7.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Western Asset Mortgage Capital 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.
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Western Asset Mortgage Capital Sloan Ratio % Chart
Competitive Comparison of Western Asset Mortgage Capital's Sloan Ratio %
For the REIT - Mortgage subindustry, Western Asset Mortgage Capital'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.
Western Asset Mortgage Capital's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Western Asset Mortgage Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Western Asset Mortgage Capital's Sloan Ratio % falls into.
Western Asset Mortgage Capital 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.
Western Asset Mortgage Capital's Net Income for the trailing twelve months (TTM) ended in Sep. 2023 was -0.829 (Dec. 2022 ) + 6.567 (Mar. 2023 ) + -8.633 (Jun. 2023 ) + -8.705 (Sep. 2023 ) = $-11.60 Mil.
Western Asset Mortgage Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2023 was 2.419 (Dec. 2022 ) + -0.074 (Mar. 2023 ) + 0.704 (Jun. 2023 ) + -2.408 (Sep. 2023 ) = $0.64 Mil.
Western Asset Mortgage Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2023 was 43.944 (Dec. 2022 ) + 59.57 (Mar. 2023 ) + 38.336 (Jun. 2023 ) + 18.345 (Sep. 2023 ) = $160.20 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.
Western Asset Mortgage Capital (NYSE:WMC) 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 Sep. 2023, Western Asset Mortgage Capital has a Sloan Ratio of -7.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Western Asset Mortgage Capital Sloan Ratio % Related Terms
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Western Asset Mortgage Capital (Western Asset Mortgage Capital) Business Description
Western Asset Mortgage Capital Corp is a specialty financial REIT company managing diversified mortgage-market investment portfolio. The corporation is externally managed by Western Asset Management Company and emphasizes on undervalued assets. It focuses on investing in, financing and managing majorly residential mortgage-backed securities, while its core focus is on Agency RMBS. The company aims to provide attractive risk-adjusted returns to its investors over the long-term across market conditions and economic cycles.
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