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.
As of Mar. 2016, Northern Tier Energy LP has a Sloan Ratio of -0.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Northern Tier Energy LP Sloan Ratio % Historical Data
* 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 Northern Tier Energy LP's Sloan Ratio %
For the Oil & Gas Refining & Marketing subindustry, Northern Tier 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.
Northern Tier Energy LP's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Northern Tier Energy LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Northern Tier Energy LP's Sloan Ratio % falls into.
Northern Tier 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.
Northern Tier Energy LP's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Northern Tier Energy LP's Net Income for the trailing twelve months (TTM) ended in Mar. 2016 was 128.9 (Jun. 2015 ) + 103.5 (Sep. 2015 ) + -12.6 (Dec. 2015 ) + 14.7 (Mar. 2016 ) = $235 Mil.
Northern Tier Energy LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2016 was 120.3 (Jun. 2015 ) + 114.1 (Sep. 2015 ) + 89.8 (Dec. 2015 ) + 5.8 (Mar. 2016 ) = $330 Mil.
Northern Tier Energy LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2016 was -11.1 (Jun. 2015 ) + -17.5 (Sep. 2015 ) + -36.6 (Dec. 2015 ) + -27.9 (Mar. 2016 ) = $-93 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.
Northern Tier Energy LP (NYSE:NTI) 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 Mar. 2016, Northern Tier Energy LP has a Sloan Ratio of -0.21%, indicating the company is in the safe zone and there is no funny business with accruals.
Northern Tier Energy LP Sloan Ratio % Related Terms
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Northern Tier Energy LP (Northern Tier Energy LP) Business Description
Northern Tier Energy LP was incorporated on October 21, 2011. Its an independent downstream energy limited partnership with refining, retail and pipeline operations that serves the PADD II region of the United States. The Company operate its assets in two business segments: the refining business and the retail business. Its refining segment consists of an 89,500 barrels per calendar day (96,500 barrels per stream day) refinery located in St. Paul Park, Minnesota. Its refinery's complexity allows to process a variety of light, heavy, sweet and sour crudes into higher value refined products. Its retail segment operated 164 convenience stores under the SuperAmerica brand and also supported 75 franchised convenience stores, which are also operated under the SuperAmerica brand. These convenience stores are located in Minnesota and Wisconsin and sell various grades of gasoline and diesel, tobacco products and immediately consumable items such as beverages, prepared food and a large variety of snacks and prepackaged items. It also own and operate SuperMom's Bakery, which prepares and distributes baked goods and other prepared food items for sale in its company-operated and franchised convenience stores and other third party locations. Crude oil is the principal raw material for the Company and the majority of the crude oil processed is delivered to the refinery through a pipeline that is owned by MPL, a related party. With respect to its wholesale gasoline and distillate sales and marketing, it compete directly with Koch Industries' Flint Hills Resources Refinery in Pine Bend, Minnesota, as well as the other refiners in the PADD II region and, to a lesser extent, U.S. and foreign refiners. Its retail competitors include Holiday and Kwik Trip.
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