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.
Star Holdings's Sloan Ratio for the quarter that ended in Mar. 2024 was -32.28%.
Warning Sign:
When sloan ratio (-54.34)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Star Holdings has a Sloan Ratio of -32.28%, indicating earnings are more likely to be made up of accruals.
Star Holdings Sloan Ratio % Historical Data
The historical data trend for Star Holdings'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 Star Holdings's Sloan Ratio %
For the Real Estate Services subindustry, Star Holdings'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.
Star Holdings's Sloan Ratio % Distribution in the Real Estate Industry
For the Real Estate industry and Real Estate sector, Star Holdings's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Star Holdings's Sloan Ratio % falls into.
Star Holdings 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.
Star Holdings's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Star Holdings's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was -89.961 (Jun. 2023 ) + -81.814 (Sep. 2023 ) + 66.134 (Dec. 2023 ) + -48.981 (Mar. 2024 ) = $-154.6 Mil.
Star Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was -4.102 (Jun. 2023 ) + -8.319 (Sep. 2023 ) + -5.744 (Dec. 2023 ) + -14.23 (Mar. 2024 ) = $-32.4 Mil.
Star Holdings's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 12.101 (Jun. 2023 ) + 17.001 (Sep. 2023 ) + 40.139 (Dec. 2023 ) + 9.634 (Mar. 2024 ) = $78.9 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.
Star Holdings (NAS:STHO) 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, Star Holdings has a Sloan Ratio of -32.28%, indicating earnings are more likely to be made up of accruals.
Star Holdings Sloan Ratio % Related Terms
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Star Holdings (Star Holdings) Business Description
Star Holdings engages in non-ground lease-related businesses, including real estate finance, operating properties, and land and development. Its portfolio is comprised primarily of its interests in Asbury and Magnolia Green residential development projects, a portfolio of commercial real estate properties, and loans that are being marketed for sale. It focuses on realizing value for shareholders from the legacy portfolio primarily by maximizing cash flows through active asset management and asset sales.
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