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.
Southwestern Energy Co's Sloan Ratio for the quarter that ended in Dec. 2023 was 9.07%.
As of Dec. 2023, Southwestern Energy Co has a Sloan Ratio of 9.07%, indicating the company is in the safe zone and there is no funny business with accruals.
Southwestern Energy Co Sloan Ratio % Historical Data
The historical data trend for Southwestern Energy Co'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 E&P subindustry, Southwestern Energy Co'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.
Southwestern Energy Co Sloan Ratio % Distribution
For the Oil & Gas industry and Energy sector, Southwestern Energy Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Southwestern Energy Co's Sloan Ratio % falls into.
Southwestern Energy Co 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.
Southwestern Energy Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Southwestern Energy Co's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 1939 (Mar. 2023 ) + 231 (Jun. 2023 ) + 45 (Sep. 2023 ) + -658 (Dec. 2023 ) = $1,557 Mil.
Southwestern Energy Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 1137 (Mar. 2023 ) + 425 (Jun. 2023 ) + 477 (Sep. 2023 ) + 477 (Dec. 2023 ) = $2,516 Mil.
Southwestern Energy Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -670 (Mar. 2023 ) + -493 (Jun. 2023 ) + -547 (Sep. 2023 ) + -337 (Dec. 2023 ) = $-2,047 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.
Southwestern Energy Co (NYSE:SWN) 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, Southwestern Energy Co has a Sloan Ratio of 9.07%, indicating the company is in the safe zone and there is no funny business with accruals.
Southwestern Energy Co Sloan Ratio % Related Terms
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Southwestern Energy Co (Southwestern Energy Co) Business Description
Southwestern Energy Co is a us-based independent energy company. It is engaged in exploration, development and production activities, including related natural gas gathering and marketing. The company principally carries its business activities in the United States. The operating segments of the company are the Exploration and Production and Marketing segment. Its Exploration and Production segment is the key revenue driver for the company which includes the revenue derived from the production and sale of natural gas and liquids. The Marketing segment generates revenue through the marketing of both the company and third-party produced natural gas and liquids volumes and through gathering fees associated with the transportation of natural gas to market.
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