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.
Nine Energy Service's Sloan Ratio for the quarter that ended in Dec. 2023 was -13.57%.
As of Dec. 2023, Nine Energy Service has a Sloan Ratio of -13.57%, indicating there is a warning stage of accrual build up.
Nine Energy Service Sloan Ratio % Historical Data
The historical data trend for Nine Energy Service'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 Nine Energy Service's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, Nine Energy Service'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.
Nine Energy Service's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Nine Energy Service's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nine Energy Service's Sloan Ratio % falls into.
Nine Energy Service 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.
Nine Energy Service's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Nine Energy Service's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -6.109 (Mar. 2023 ) + -2.537 (Jun. 2023 ) + -13.262 (Sep. 2023 ) + -10.305 (Dec. 2023 ) = $-32.2 Mil.
Nine Energy Service's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 3.965 (Mar. 2023 ) + 27.13 (Jun. 2023 ) + -9.91 (Sep. 2023 ) + 24.324 (Dec. 2023 ) = $45.5 Mil.
Nine Energy Service's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -5.284 (Mar. 2023 ) + -5.816 (Jun. 2023 ) + -3.615 (Sep. 2023 ) + -8.442 (Dec. 2023 ) = $-23.2 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.
Nine Energy Service (NYSE:NINE) 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, Nine Energy Service has a Sloan Ratio of -13.57%, indicating there is a warning stage of accrual build up.
Nine Energy Service Sloan Ratio % Related Terms
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Nine Energy Service (Nine Energy Service) Business Description
Nine Energy Service Inc is a North American onshore completion and production services provider. It targets unconventional oil and gas resource development. It operates in one segment, Completion Solutions. The Completion Solutions segment offers cementing services; completion tools, including liner hangers and accessories, frac sleeves, fully composite frac plugs, and specialty open hole float equipment and centralizers and other services. It operates in the US, Canada, and other countries where most of the revenue is generated from the United States.
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