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.
National Storage REIT's Sloan Ratio for the quarter that ended in Dec. 2023 was 10.17%.
As of Dec. 2023, National Storage REIT has a Sloan Ratio of 10.17%, indicating there is a warning stage of accrual build up.
National Storage REIT Sloan Ratio % Historical Data
The historical data trend for National Storage REIT'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 National Storage REIT's Sloan Ratio %
For the REIT - Industrial subindustry, National Storage REIT'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.
National Storage REIT's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, National Storage REIT's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where National Storage REIT's Sloan Ratio % falls into.
National Storage REIT 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.
National Storage REIT's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
National Storage REIT's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 301.939 (Jun. 2023 ) + 16.725 (Dec. 2023 ) = A$318.7 Mil.
National Storage REIT's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 98.355 (Jun. 2023 ) + 91.645 (Dec. 2023 ) = A$190.0 Mil.
National Storage REIT's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -135.56 (Jun. 2023 ) + -226.525 (Dec. 2023 ) = A$-362.1 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.
National Storage REIT (ASX:NSR) 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, National Storage REIT has a Sloan Ratio of 10.17%, indicating there is a warning stage of accrual build up.
National Storage REIT Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of National Storage REIT's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
National Storage REIT (ASX:NSR) Business Description
National Storage REIT is the largest self-storage provider in Australia and New Zealand. Most of its properties are owned and operated, but it also has long-term leaseholds. Most NSR centres are in city fringe, suburban and regional areas. The industry is fragmented, mostly comprising single site owners, while the largest three players, NSR, privately owned Kennards, and the listed Abacus Storage King operate over a third of the market. NSR plans to continue acquiring and developing self-storage centres, consolidating the fragmented industry, as well generating organic growth via dynamic pricing and occupancy management. However, its large rivals are competing via similar strategies.
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