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.
Kosmos Energy's Sloan Ratio for the quarter that ended in Dec. 2023 was 8.98%.
As of Dec. 2023, Kosmos Energy has a Sloan Ratio of 8.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Kosmos Energy Sloan Ratio % Historical Data
The historical data trend for Kosmos Energy'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 Kosmos Energy's Sloan Ratio %
For the Oil & Gas E&P subindustry, Kosmos Energy'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.
Kosmos Energy's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kosmos Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kosmos Energy's Sloan Ratio % falls into.
Kosmos Energy 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.
Kosmos Energy's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Kosmos Energy's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 83.309 (Mar. 2023 ) + 23.345 (Jun. 2023 ) + 85.185 (Sep. 2023 ) + 21.681 (Dec. 2023 ) = $214 Mil.
Kosmos Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 203.853 (Mar. 2023 ) + 18.11 (Jun. 2023 ) + 249.431 (Sep. 2023 ) + 293.776 (Dec. 2023 ) = $765 Mil.
Kosmos Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -239.356 (Mar. 2023 ) + -210.806 (Jun. 2023 ) + -208.384 (Sep. 2023 ) + -336.304 (Dec. 2023 ) = $-995 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.
Kosmos Energy (NYSE:KOS) 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, Kosmos Energy has a Sloan Ratio of 8.98%, indicating the company is in the safe zone and there is no funny business with accruals.
Kosmos Energy Sloan Ratio % Related Terms
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Kosmos Energy (Kosmos Energy) Business Description
Kosmos Energy Ltd is an independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. The company focuses on field developments designed to accelerate production. Kosmos' exploration is tied to a geologically based approach geared toward the identification of petroleum systems. Its process starts with geologic studies that assess a region's subsurface but also incorporates basin modeling as well as techniques to identify reservoir/seal pair development and trap definition. In addition, a 3D seismic analysis is done to identify prospective traps of interest. In tandem with the subsurface analysis, a country-specific analysis is done to get an understanding of above-ground dynamics before targeting specific licenses.
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