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.
Whitecap Resources's Sloan Ratio for the quarter that ended in Mar. 2024 was 2.70%.
As of Mar. 2024, Whitecap Resources has a Sloan Ratio of 2.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Whitecap Resources Sloan Ratio % Historical Data
The historical data trend for Whitecap Resources'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 Whitecap Resources's Sloan Ratio %
For the Oil & Gas E&P subindustry, Whitecap Resources'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.
Whitecap Resources's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Whitecap Resources's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Whitecap Resources's Sloan Ratio % falls into.
Whitecap Resources 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.
Whitecap Resources's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Whitecap Resources's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 132.019 (Jun. 2023 ) + 112.852 (Sep. 2023 ) + 222.346 (Dec. 2023 ) + 44.178 (Mar. 2024 ) = $511 Mil.
Whitecap Resources's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 312.284 (Jun. 2023 ) + 282.906 (Sep. 2023 ) + 354.949 (Dec. 2023 ) + 260.417 (Mar. 2024 ) = $1,211 Mil.
Whitecap Resources's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -186.888 (Jun. 2023 ) + -155.864 (Sep. 2023 ) + -343.918 (Dec. 2023 ) + -205.378 (Mar. 2024 ) = $-892 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.
Whitecap Resources (OTCPK:SPGYF) 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. 2024, Whitecap Resources has a Sloan Ratio of 2.70%, indicating the company is in the safe zone and there is no funny business with accruals.
Whitecap Resources Sloan Ratio % Related Terms
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Whitecap Resources (Whitecap Resources) Business Description
Whitecap Resources Inc is engaged in the business of acquiring, developing, and holding interests in petroleum and natural gas properties and assets. The company acquires assets with discovered petroleum initially in place and low current recovery factors. Light oil is the primary byproduct of Whitecap's Canadian assets. To extract petroleum products from its resources, the company uses horizontal drilling, in addition to multistage fracturing technology. Crude oil is the revenue generator out of the basket of energy products sold by Whitecap.
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