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.
Green Brick Partners's Sloan Ratio for the quarter that ended in Dec. 2023 was 4.45%.
As of Dec. 2023, Green Brick Partners has a Sloan Ratio of 4.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Green Brick Partners Sloan Ratio % Historical Data
The historical data trend for Green Brick Partners'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 Green Brick Partners's Sloan Ratio %
For the Residential Construction subindustry, Green Brick Partners'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.
Green Brick Partners's Sloan Ratio % Distribution in the Homebuilding & Construction Industry
For the Homebuilding & Construction industry and Consumer Cyclical sector, Green Brick Partners's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Green Brick Partners's Sloan Ratio % falls into.
Green Brick Partners 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.
Green Brick Partners's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Green Brick Partners's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 64.18 (Mar. 2023 ) + 75.27 (Jun. 2023 ) + 72.156 (Sep. 2023 ) + 73.02 (Dec. 2023 ) = $285 Mil.
Green Brick Partners's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 154.707 (Mar. 2023 ) + 55.461 (Jun. 2023 ) + 22.531 (Sep. 2023 ) + -19.357 (Dec. 2023 ) = $213 Mil.
Green Brick Partners's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -3.101 (Mar. 2023 ) + -4.731 (Jun. 2023 ) + -2.167 (Sep. 2023 ) + -3.35 (Dec. 2023 ) = $-13 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.
Green Brick Partners (NYSE:GRBK) 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, Green Brick Partners has a Sloan Ratio of 4.45%, indicating the company is in the safe zone and there is no funny business with accruals.
Green Brick Partners Sloan Ratio % Related Terms
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Green Brick Partners (Green Brick Partners) Business Description
Green Brick Partners Inc is a homebuilding and land development company. It acquires and develops land, as well as provides land and construction financing to its controlled builders. The company has three reportable segments: builder operations central, builder operations southeast, and land development. The majority of company's revenue is generated from the builder operations central segment that is entirely the operations of builders in Texas. The company is engaged in various aspects of the homebuilding process, including land acquisition and development, entitlements, design, construction, marketing, sales, and brand image creation. In addition to homebuilding, the company provides home financing services, such as mortgage and title, through its subsidiaries.
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