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.
* 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 Seritage Growth Properties's Sloan Ratio %
For the REIT - Retail subindustry, Seritage Growth Properties'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.
Seritage Growth Properties's Sloan Ratio % Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Seritage Growth Properties's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Seritage Growth Properties's Sloan Ratio % falls into.
Seritage Growth Properties 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.
Seritage Growth Properties's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -61.986 (Mar. 2023 ) + -95.707 (Jun. 2023 ) + -0.902 (Sep. 2023 ) + 3.684 (Dec. 2023 ) = $-154.91 Mil.
Seritage Growth Properties's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was -21.952 (Mar. 2023 ) + -9.575 (Jun. 2023 ) + -10.494 (Sep. 2023 ) + -11.04 (Dec. 2023 ) = $-53.06 Mil.
Seritage Growth Properties's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 240.29 (Mar. 2023 ) + 266.502 (Jun. 2023 ) + 138.772 (Sep. 2023 ) + 87.347 (Dec. 2023 ) = $732.91 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.
Seritage Growth Properties (NYSE:SRG) 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, Seritage Growth Properties has a Sloan Ratio of -85.72%, indicating earnings are more likely to be made up of accruals.
Seritage Growth Properties Sloan Ratio % Related Terms
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Seritage Growth Properties (Seritage Growth Properties) Business Description
Seritage Growth Properties is engaged in the real property business through its investment in its operating partnership, Seritage Growth Properties, L.P. Seritage is principally engaged in the acquisition, ownership, development, redevelopment, management and leasing of diversified retail real estate throughout the United States. The company's primary objective is to create value for its shareholders through the re-leasing and redevelopment of the majority of its Wholly Owned Properties and JV Properties. It generates a majority of its revenue from tenants.
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