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.
STORE Capital's Sloan Ratio for the quarter that ended in Sep. 2022 was 9.39%.
As of Sep. 2022, STORE Capital has a Sloan Ratio of 9.39%, indicating the company is in the safe zone and there is no funny business with accruals.
STORE Capital Sloan Ratio % Historical Data
The historical data trend for STORE Capital'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 STORE Capital's Sloan Ratio %
For the REIT - Diversified subindustry, STORE Capital'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.
STORE Capital's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, STORE Capital's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where STORE Capital's Sloan Ratio % falls into.
STORE Capital 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.
STORE Capital's Sloan Ratio for the fiscal year that ended in Dec. 2021 is calculated as
STORE Capital's Net Income for the trailing twelve months (TTM) ended in Sep. 2022 was 75.021 (Dec. 2021 ) + 87.022 (Mar. 2022 ) + 90.505 (Jun. 2022 ) + 68.585 (Sep. 2022 ) = $321.1 Mil.
STORE Capital's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2022 was 168.595 (Dec. 2021 ) + 160.887 (Mar. 2022 ) + 166.978 (Jun. 2022 ) + 173.581 (Sep. 2022 ) = $670.0 Mil.
STORE Capital's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2022 was -390.422 (Dec. 2021 ) + -456.017 (Mar. 2022 ) + -274.258 (Jun. 2022 ) + -214.455 (Sep. 2022 ) = $-1,335.2 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.
STORE Capital (NYSE:STOR) 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 Sep. 2022, STORE Capital has a Sloan Ratio of 9.39%, indicating the company is in the safe zone and there is no funny business with accruals.
STORE Capital Sloan Ratio % Related Terms
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STORE Capital (STORE Capital) Business Description
STORE Capital Corp is a real estate investment trust involved in the acquisition and management of single tenant operation real estate, or STORE, properties across the U.S. STORE Capital primarily leases facilities at which a company operates its business and generates sales to middle-market and large businesses through long-term agreements. Most of STORE's revenue comes from its service sector customers, which include, notably, restaurants, movie theaters, health clubs, early childhood education centers, and furniture stores. A sizable percentage of STORE's total real estate portfolio is comprised of the restaurant and industrial locations. Specifically, properties in Texas, Illinois, and Georgia make up a large amount of STORE's investments as well.
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