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.
Derwent London's Sloan Ratio for the quarter that ended in Dec. 2023 was 0.00%.
As of Dec. 2023, Derwent London has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Derwent London Sloan Ratio % Historical Data
The historical data trend for Derwent London'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 Derwent London's Sloan Ratio %
For the REIT - Office subindustry, Derwent London'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.
Derwent London's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Derwent London's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Derwent London's Sloan Ratio % falls into.
Derwent London 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.
Derwent London's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Derwent London's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -143.2 (Jun. 2023 ) + -333.2 (Dec. 2023 ) = £-476.4 Mil.
Derwent London's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 43.8 (Jun. 2023 ) + 0 (Dec. 2023 ) = £43.8 Mil.
Derwent London's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 8.1 (Jun. 2023 ) + -106.1 (Dec. 2023 ) = £-98.0 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.
Derwent London (LSE:DLN) 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, Derwent London has a Sloan Ratio of 0.00%, indicating the company is in the safe zone and there is no funny business with accruals.
Derwent London Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Derwent London's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Derwent London PLC is a London-focused real estate investment trust. Derwent owns, manages, and refurbishes office real estate in Central London. Within this region, the majority of the company's assets are located in the districts of London's West End, such as Fitzrovia. Properties in London's Tech Belt and the City Borders also represent significant parts of the company's real estate portfolio. Derwent derives nearly all of its revenue from tenants in the form of rental income structured in mid-to-long-term leases. Office buildings in the central West End are responsible for the majority of revenue generated. Media and advertising companies, professional and business services firms, and retail head offices are all fairly evenly represented among the company's tenants.
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