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.
As of Dec. 2023, Sunstone Hotel Investors has a Sloan Ratio of -7.92%, indicating the company is in the safe zone and there is no funny business with accruals.
Sunstone Hotel Investors Sloan Ratio % Historical Data
* 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 Sunstone Hotel Investors's Sloan Ratio %
For the REIT - Hotel & Motel subindustry, Sunstone Hotel Investors'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.
Sunstone Hotel Investors's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Sunstone Hotel Investors's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sunstone Hotel Investors's Sloan Ratio % falls into.
Sunstone Hotel Investors 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.
Sunstone Hotel Investors's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sunstone Hotel Investors's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 21.087 (Mar. 2023 ) + 43.078 (Jun. 2023 ) + 15.558 (Sep. 2023 ) + 126.985 (Dec. 2023 ) = $206.7 Mil.
Sunstone Hotel Investors's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 47.248 (Mar. 2023 ) + 59.74 (Jun. 2023 ) + 61.754 (Sep. 2023 ) + 29.389 (Dec. 2023 ) = $198.1 Mil.
Sunstone Hotel Investors's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -22.474 (Mar. 2023 ) + -26.745 (Jun. 2023 ) + -11.003 (Sep. 2023 ) + 318.304 (Dec. 2023 ) = $258.1 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.
Sunstone Hotel Investors (NYSE:SHO) 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, Sunstone Hotel Investors has a Sloan Ratio of -7.92%, indicating the company is in the safe zone and there is no funny business with accruals.
Sunstone Hotel Investors Sloan Ratio % Related Terms
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Sunstone Hotel Investors (Sunstone Hotel Investors) Business Description
Sunstone Hotel Investors Inc is a real estate investment trust that acquires, owns, manages, and renovates the full-service hotel and select-service hotel properties across various states in the United States. The firm's portfolio consists primarily of urban, upper-upscale hotels. The vast majority of these hotels are managed under Marriott, Hilton, Fairmont, and Sheraton brands. Regionally, the company's assets are located in its California, Other West, Midwest, and East geographical segments within the U.S. The majority of the company's revenue is derived from its Eastern operations, closely followed by its Californian operations. Sunstone's sole source of income is hotel revenue from its hotel ownership segment.
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