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.
Genesis Energy LP's Sloan Ratio for the quarter that ended in Dec. 2023 was 2.71%.
As of Dec. 2023, Genesis Energy LP has a Sloan Ratio of 2.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Genesis Energy LP Sloan Ratio % Historical Data
The historical data trend for Genesis Energy LP'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 Genesis Energy LP's Sloan Ratio %
For the Oil & Gas Midstream subindustry, Genesis Energy LP'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.
Genesis Energy LP's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Genesis Energy LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Genesis Energy LP's Sloan Ratio % falls into.
Genesis Energy LP 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.
Genesis Energy LP's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Genesis Energy LP's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -1.644 (Mar. 2023 ) + 49.344 (Jun. 2023 ) + 58.07 (Sep. 2023 ) + 11.95 (Dec. 2023 ) = $118 Mil.
Genesis Energy LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 97.657 (Mar. 2023 ) + 157.664 (Jun. 2023 ) + 141.043 (Sep. 2023 ) + 124.762 (Dec. 2023 ) = $521 Mil.
Genesis Energy LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -121.86 (Mar. 2023 ) + -109.864 (Jun. 2023 ) + -144.268 (Sep. 2023 ) + -217.656 (Dec. 2023 ) = $-594 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.
Genesis Energy LP (NYSE:GEL) 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, Genesis Energy LP has a Sloan Ratio of 2.71%, indicating the company is in the safe zone and there is no funny business with accruals.
Genesis Energy LP Sloan Ratio % Related Terms
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Genesis Energy LP (Genesis Energy LP) Business Description
Genesis Energy LP is an us-based limited partnership that focuses on the midstream segment of the crude oil and natural gas industry. It engages in providing services to crude oil and natural gas producers, and industrial and commercial enterprises. The company's reportable segments are offshore pipeline transportation, sodium minerals and sulfur services, onshore facilities and transportation, and marine transportation. It generates maximum revenue from the offshore pipeline transportation segment. The Sodium minerals and sulfur services segment includes trona and trona-based exploring, mining, processing, producing, marketing, and selling activities, as well as processing high sulfur gas streams for refineries to remove the sulfur, and selling the related by-product.
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