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Terra Nitrogen Co LP (Terra Nitrogen Co LP) Sloan Ratio % : -3.14% (As of Dec. 2017)


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What is Terra Nitrogen Co LP Sloan Ratio %?

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.

Terra Nitrogen Co LP's Sloan Ratio for the quarter that ended in Dec. 2017 was -3.14%.

As of Dec. 2017, Terra Nitrogen Co LP has a Sloan Ratio of -3.14%, indicating the company is in the safe zone and there is no funny business with accruals.


Terra Nitrogen Co LP Sloan Ratio % Historical Data

The historical data trend for Terra Nitrogen Co 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.

* Premium members only.

Terra Nitrogen Co LP Sloan Ratio % Chart

Terra Nitrogen Co LP Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 30.79 7.65 4.21 5.01 -3.14

Terra Nitrogen Co LP Quarterly Data
Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.01 6.58 -1.08 -0.86 -3.14

Competitive Comparison of Terra Nitrogen Co LP's Sloan Ratio %

For the Agricultural Inputs subindustry, Terra Nitrogen Co 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.


Terra Nitrogen Co LP's Sloan Ratio % Distribution in the Agriculture Industry

For the Agriculture industry and Basic Materials sector, Terra Nitrogen Co LP's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Terra Nitrogen Co LP's Sloan Ratio % falls into.



Terra Nitrogen Co 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.

Terra Nitrogen Co LP's Sloan Ratio for the fiscal year that ended in Dec. 2017 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2017 )-Cash Flow from Operations (A: Dec. 2017 )
-Cash Flow from Investing (A: Dec. 2017 ))/Total Assets (A: Dec. 2017 )
=(153.9-177.5
--10.9)/403.9
=-3.14%

Terra Nitrogen Co LP's Sloan Ratio for the quarter that ended in Dec. 2017 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2017 )
=(153.9-177.5
--10.9)/403.9
=-3.14%

Terra Nitrogen Co LP's Net Income for the trailing twelve months (TTM) ended in Dec. 2017 was 42.2 (Mar. 2017 ) + 39.5 (Jun. 2017 ) + 22.8 (Sep. 2017 ) + 49.4 (Dec. 2017 ) = $153.9 Mil.
Terra Nitrogen Co LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2017 was 41.6 (Mar. 2017 ) + 55.5 (Jun. 2017 ) + 33.6 (Sep. 2017 ) + 46.8 (Dec. 2017 ) = $177.5 Mil.
Terra Nitrogen Co LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2017 was -11.3 (Mar. 2017 ) + -10.1 (Jun. 2017 ) + 2.8 (Sep. 2017 ) + 7.7 (Dec. 2017 ) = $-10.9 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.


Terra Nitrogen Co LP  (NYSE:TNH) 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.

According to How to Beat the Market with the Sloan Ratio:

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. 2017, Terra Nitrogen Co LP has a Sloan Ratio of -3.14%, indicating the company is in the safe zone and there is no funny business with accruals.


Terra Nitrogen Co LP Sloan Ratio % Related Terms

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Terra Nitrogen Co LP (Terra Nitrogen Co LP) Business Description

Traded in Other Exchanges
N/A
Address
Terra Nitrogen Co LP is a limited partnership company producing nitrogen fertilizer products. Its principal products anhydrous ammonia and urea ammonium nitrate solutions are manufactured at its facility in Verdigris, Oklahoma. The company's operations are conducted through a partnership with Terra Nitrogen, Limited Partnership, and Terra Nitrogen GP Inc.
Executives
Michael A Jackson director
Anne H Lloyd director
Susan L Menzel officer: Sr. VP, Human Resources C/O CF INDUSTRIES HOLDINGS, INC., FOUR PARKWAY NORTH, DEERFIELD IL 60015
Christopher D Bohn officer: VP, Supply Chain C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Adam L Hall officer: VP, Corporate Development C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Dennis P. Kelleher director, officer: Sr Vice President and CFO C/O CF INDUSTRIES HOLDINGS, INC, 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Theodore D Sands director CITYPLACE ONE SUITE 300, ARCH MINERAL CORP, CREVE COEUR MO 63141
Jablow Spertus Wendy S officer: VP, Human Resources C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Anthony J Nocchiero director, officer: Senior Vice President and CFO C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Lynn F White officer: VP, Corporate Development C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Philipp P Koch officer: VP, Supply Chain C/O CF INDUSTRIES, INC., ONE SALEM LAKE DRIVE, LONG GROVE IL 60047
Stephen R Wilson director, officer: Chairman, President, and CEO C/O CF INDUSTRIES, INC., ONE SALEM LAKE DRIVE, LONG GROVE IL 60047
Douglas C Barnard officer: VP, GC, and Corp. Secretary C/O CF INDUSTRIES, INC., ONE SALEM LAKE DRIVE, LONG GROVE IL 60047
W Anthony Will officer: VP, Manufacturing and Dist. C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015
Richard A Hoker officer: VP and Corporate Controller C/O CF INDUSTRIES HOLDINGS, INC., 4 PARKWAY NORTH, SUITE 400, DEERFIELD IL 60015

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