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.
Chesapeake Utilities's Sloan Ratio for the quarter that ended in Dec. 2023 was 30.11%.
Warning Sign:
When sloan ratio (30.11)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Dec. 2023, Chesapeake Utilities has a Sloan Ratio of 30.11%, indicating earnings are more likely to be made up of accruals.
Chesapeake Utilities Sloan Ratio % Historical Data
The historical data trend for Chesapeake Utilities'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 Chesapeake Utilities's Sloan Ratio %
For the Utilities - Regulated Gas subindustry, Chesapeake Utilities'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.
Chesapeake Utilities's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Chesapeake Utilities's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Chesapeake Utilities's Sloan Ratio % falls into.
Chesapeake Utilities 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.
Chesapeake Utilities's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Chesapeake Utilities's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 36.344 (Mar. 2023 ) + 16.133 (Jun. 2023 ) + 9.407 (Sep. 2023 ) + 25.328 (Dec. 2023 ) = $87.2 Mil.
Chesapeake Utilities's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 81.667 (Mar. 2023 ) + 67.316 (Jun. 2023 ) + 34.364 (Sep. 2023 ) + 20.135 (Dec. 2023 ) = $203.5 Mil.
Chesapeake Utilities's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -42.654 (Mar. 2023 ) + -46.337 (Jun. 2023 ) + -46.752 (Sep. 2023 ) + -975.648 (Dec. 2023 ) = $-1,111.4 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.
Chesapeake Utilities (NYSE:CPK) 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, Chesapeake Utilities has a Sloan Ratio of 30.11%, indicating earnings are more likely to be made up of accruals.
Chesapeake Utilities Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of Chesapeake Utilities's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
Chesapeake Utilities (Chesapeake Utilities) Business Description
Chesapeake Utilities Corp is a diversified energy delivery company that is engaged in natural gas transmission and distribution, electricity generation and distribution, propane gas distribution, mobile compressed natural gas utility services and solutions and other businesses. The company operates in two reportable segments, Regulated Energy and Unregulated Energy. The company's natural gas and electric distribution operations in Delaware, Maryland and Florida are subject to regulation by their respective PSC. Eastern Shore, its natural gas transmission subsidiary, is subject to regulation by the FERC and Peninsula Pipeline and Aspire Energy Express, its intrastate pipeline subsidiaries, are subject to regulation by the Florida PSC and Public Utilities Commission of Ohio, respectively.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
CPK has been successfully added to your 