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 Mar. 2024, CNL Healthcare Properties has a Sloan Ratio of -4.82%, indicating the company is in the safe zone and there is no funny business with accruals.
CNL Healthcare Properties 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 CNL Healthcare Properties's Sloan Ratio %
For the REIT - Healthcare Facilities subindustry, CNL Healthcare Properties'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.
CNL Healthcare Properties's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, CNL Healthcare Properties's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CNL Healthcare Properties's Sloan Ratio % falls into.
CNL Healthcare Properties 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.
CNL Healthcare Properties's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
CNL Healthcare Properties's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -5.315 (Jun. 2023 ) + -5.414 (Sep. 2023 ) + -9.118 (Dec. 2023 ) + -5.035 (Mar. 2024 ) = $-24.9 Mil.
CNL Healthcare Properties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 11.415 (Jun. 2023 ) + 7.873 (Sep. 2023 ) + 7.338 (Dec. 2023 ) + 7.148 (Mar. 2024 ) = $33.8 Mil.
CNL Healthcare Properties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1.949 (Jun. 2023 ) + 1.134 (Sep. 2023 ) + 9.595 (Dec. 2023 ) + -2.652 (Mar. 2024 ) = $6.1 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.
CNL Healthcare Properties (OTCPK:CHTH) 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, CNL Healthcare Properties has a Sloan Ratio of -4.82%, indicating the company is in the safe zone and there is no funny business with accruals.
CNL Healthcare Properties Sloan Ratio % Related Terms
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CNL Healthcare Properties (CNL Healthcare Properties) Business Description
CNL Healthcare Properties Inc operates as a real estate investment trust. The company's real estate ownership consists of owning, managing, leasing, acquiring, developing, investing in, and as conditions warrant, disposing of real estate assets in the healthcare, office, retail, lifestyle, restaurant, hotel, and multifamily development sectors. Additionally, it focuses on acquiring properties in the senior housing, medical office, acute care, and post-acute care classes, including stabilized, value-add, and development properties, income-producing real estate, and real estate-related securities and loans.
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