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.
Timbercreek Financial's Sloan Ratio for the quarter that ended in Mar. 2024 was -7.88%.
As of Mar. 2024, Timbercreek Financial has a Sloan Ratio of -7.88%, indicating the company is in the safe zone and there is no funny business with accruals.
Timbercreek Financial Sloan Ratio % Historical Data
The historical data trend for Timbercreek Financial'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 Timbercreek Financial's Sloan Ratio %
For the Mortgage Finance subindustry, Timbercreek Financial'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.
Timbercreek Financial's Sloan Ratio % Distribution in the Banks Industry
For the Banks industry and Financial Services sector, Timbercreek Financial's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Timbercreek Financial's Sloan Ratio % falls into.
Timbercreek Financial 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.
Timbercreek Financial's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Timbercreek Financial's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 16.888 (Jun. 2023 ) + 16.455 (Sep. 2023 ) + 14.974 (Dec. 2023 ) + 14.368 (Mar. 2024 ) = C$62.7 Mil.
Timbercreek Financial's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 22.925 (Jun. 2023 ) + 17.459 (Sep. 2023 ) + 24.958 (Dec. 2023 ) + 15.026 (Mar. 2024 ) = C$80.4 Mil.
Timbercreek Financial's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 27.998 (Jun. 2023 ) + -6.59 (Sep. 2023 ) + 119.962 (Dec. 2023 ) + -23.609 (Mar. 2024 ) = C$117.8 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.
Timbercreek Financial (TSX:TF) 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, Timbercreek Financial has a Sloan Ratio of -7.88%, indicating the company is in the safe zone and there is no funny business with accruals.
Timbercreek Financial Sloan Ratio % Related Terms
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Timbercreek Financial (TSX:TF) Business Description
Timbercreek Financial Corp is a Canada-based non-banking commercial real estate lender. The company provides shorter-duration, customized financing solutions to professional real estate investors. It invests directly in a diversified portfolio of structured mortgage loans primarily secured by stabilized, income-producing commercial real estates, such as multi-residential, office and retail buildings located in urban markets across Canada. The company's strategy is to preserve investor capital by lending mainly against income producing real estate, mitigate concentration risk by diversifying geographically by asset type and borrower and ensure loan to value ratios.
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