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.
Arbor Realty Trust's Sloan Ratio for the quarter that ended in Mar. 2024 was -10.53%.
As of Mar. 2024, Arbor Realty Trust has a Sloan Ratio of -10.53%, indicating there is a warning stage of accrual build up.
Arbor Realty Trust Sloan Ratio % Historical Data
The historical data trend for Arbor Realty Trust'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 Arbor Realty Trust's Sloan Ratio %
For the REIT - Mortgage subindustry, Arbor Realty Trust'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.
Arbor Realty Trust's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Arbor Realty Trust's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Arbor Realty Trust's Sloan Ratio % falls into.
Arbor Realty Trust 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.
Arbor Realty Trust's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Arbor Realty Trust's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 86.506 (Jun. 2023 ) + 88.266 (Sep. 2023 ) + 102 (Dec. 2023 ) + 68.215 (Mar. 2024 ) = $345.0 Mil.
Arbor Realty Trust's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 158.406 (Jun. 2023 ) + 56.877 (Sep. 2023 ) + 77.359 (Dec. 2023 ) + 259.956 (Mar. 2024 ) = $552.6 Mil.
Arbor Realty Trust's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 200.291 (Jun. 2023 ) + 390.507 (Sep. 2023 ) + 460.137 (Dec. 2023 ) + 331.584 (Mar. 2024 ) = $1,382.5 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.
Arbor Realty Trust (NYSE:ABR) 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, Arbor Realty Trust has a Sloan Ratio of -10.53%, indicating there is a warning stage of accrual build up.
Arbor Realty Trust Sloan Ratio % Related Terms
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Arbor Realty Trust (Arbor Realty Trust) Business Description
Arbor Realty Trust Inc is a specialized real estate finance company. It invests in a diversified portfolio of structured finance assets in the multifamily and commercial real estate markets, primarily consisting of bridge and mezzanine loans, including junior participating interests in first mortgages, preferred and direct equity. In addition, it may also directly acquire real property and invest in real estate-related notes and certain mortgage-related securities. The company has two business segments, Structured Business and Agency Business. It generates a majority of its revenue from the Structured Business Segment. The company is externally managed and advised by Arbor Commercial Mortgage, LLC.
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