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.
Nabors Industries's Sloan Ratio for the quarter that ended in Dec. 2023 was -1.50%.
As of Dec. 2023, Nabors Industries has a Sloan Ratio of -1.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Nabors Industries Sloan Ratio % Historical Data
The historical data trend for Nabors Industries'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.
For the Oil & Gas Drilling subindustry, Nabors Industries'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.
Nabors Industries Sloan Ratio % Distribution
For the Oil & Gas industry and Energy sector, Nabors Industries's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Nabors Industries's Sloan Ratio % falls into.
Nabors Industries 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.
Nabors Industries's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Nabors Industries's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 49.224 (Mar. 2023 ) + 4.611 (Jun. 2023 ) + -48.916 (Sep. 2023 ) + -16.703 (Dec. 2023 ) = $-12 Mil.
Nabors Industries's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 154.05 (Mar. 2023 ) + 168.466 (Jun. 2023 ) + 133.425 (Sep. 2023 ) + 181.921 (Dec. 2023 ) = $638 Mil.
Nabors Industries's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -128.131 (Mar. 2023 ) + -154.843 (Jun. 2023 ) + -146 (Sep. 2023 ) + -141.45 (Dec. 2023 ) = $-570 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.
Nabors Industries (NYSE:NBR) 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, Nabors Industries has a Sloan Ratio of -1.50%, indicating the company is in the safe zone and there is no funny business with accruals.
Nabors Industries Sloan Ratio % Related Terms
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Nabors Industries (Nabors Industries) Business Description
Nabors Industries Ltd owns and operates one of the world's largest land-based drilling rig fleets and is a provider of offshore platform rigs in the United States and international markets. It also provides performance tools, directional drilling services, tubular running services, and innovative technologies. It has operations in over 15 countries, 300 actively marketed rigs for land-based drilling operations and 29 actively marketed rigs for offshore platform drilling operations in the United States and multiple international markets. The company has five reportable segments: U.S. Drilling, Canada Drilling, International Drilling, Drilling Solutions, and Rig Technologies. The key revenue of the company is generated from International Drilling.
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