Western Midstream Partners LP (Western Midstream Partners LP) Sloan Ratio %

: 7.76% (As of Dec. 2023)

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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.

Western Midstream Partners LP's Sloan Ratio for the quarter that ended in Dec. 2023 was 7.76%.

As of Dec. 2023, Western Midstream Partners LP has a Sloan Ratio of 7.76%, indicating the company is in the safe zone and there is no funny business with accruals.

Western Midstream Partners LP Sloan Ratio % Historical Data

The historical data trend for Western Midstream Partners 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.

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Western Midstream Partners LP Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Sloan Ratio %

22.30

-5.62

-5.26

-2.36

7.76

Western Midstream Partners LP Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Sloan Ratio %																-2.36	-2.61	-2.80	-1.78	7.76

Competitive Comparison

For the Oil & Gas Midstream subindustry, Western Midstream Partners 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.

Western Midstream Partners LP Sloan Ratio % Distribution

For the Oil & Gas industry and Energy sector, Western Midstream Partners LP's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Western Midstream Partners LP's Sloan Ratio % falls into.

Western Midstream Partners 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.

Western Midstream Partners LP's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (A: Dec. 2023 )	-	Cash Flow from Operations (A: Dec. 2023 )
	-	Cash Flow from Investing (A: Dec. 2023 ))	/	Total Assets (A: Dec. 2023 )
	=	(1022.216	-	1661.334
	-	-1607.291)	/	12471.607
	=	7.76%

Western Midstream Partners LP's Sloan Ratio for the quarter that ended in Dec. 2023 is calculated as

Sloan Ratio	=	(Net Income (TTM)	-	Cash Flow from Operations (TTM))
	-	Cash Flow from Investing (TTM))	/	Total Assets (Q: Dec. 2023 )
	=	(1022.216	-	1661.334
	-	-1607.291)	/	12471.607
	=	7.76%

Western Midstream Partners LP's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 203.645 (Mar. 2023 ) + 252.921 (Jun. 2023 ) + 277.296 (Sep. 2023 ) + 288.354 (Dec. 2023 ) = $1,022 Mil.
Western Midstream Partners LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 302.424 (Mar. 2023 ) + 490.823 (Jun. 2023 ) + 394.787 (Sep. 2023 ) + 473.3 (Dec. 2023 ) = $1,661 Mil.
Western Midstream Partners LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -179.178 (Mar. 2023 ) + -151.49 (Jun. 2023 ) + -207.916 (Sep. 2023 ) + -1068.707 (Dec. 2023 ) = $-1,607 Mil.

Western Midstream Partners LP (NYSE:WES) 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. 2023, Western Midstream Partners LP has a Sloan Ratio of 7.76%, indicating the company is in the safe zone and there is no funny business with accruals.

Western Midstream Partners LP Sloan Ratio % Related Terms

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Western Midstream Partners LP (Western Midstream Partners LP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Western Midstream Partners LP (NYSE:WES) » Definitions » Sloan Ratio %

Comparable Companies

PAA AM ENLC DTM FRO ETRN PAGP STNG CEQP HEP TSX:ENB EPD WMB ET LNG OKE MPLX KMI TSX:TRP CQP

Traded in Other Exchanges

N/A

Address

9950 Woodloch Forest Drive, Suite 2800, The Woodlands, TX, USA, 77380

Website

http://www.westernmidstream.com

Western Midstream Partners LP is a US-based company which own, operate, acquire and develop midstream energy assets. The company through its subsidiary is engaged in the business of gathering, processing, compressing, treating and transporting natural gas, condensate, NGLs and crude oil. It owns or has investments in assets located in the Rocky Mountains (Colorado, Utah, and Wyoming), the Mid-Continent (Kansas and Oklahoma), North-central Pennsylvania and Texas.

Executives

Kerr Mcgee Corp /de	10 percent owner	5 GREENWAY PLAZA, SUITE 110, HOUSTON TX 77046
Occidental Petroleum Corp /de/	10 percent owner	5 GREENWAY PLAZA, SUITE 110, HOUSTON TX 77046
Alejandro O Nebreda	officer: SVP, Business Services	9950 WOODLOCH FOREST DR, SUITE 2800, THE WOODLANDS TX 77380
Michael S. Forsyth	officer: SVP, North Operations	9950 WOODLOCH FOREST DR, SUITE 2800, THE WOODLANDS TX 77380
Daniel P. Holderman	officer: SVP Co-Chief Operating Officer	9950 WOODLOCH FOREST DR, SUITE 2800, THE WOODLANDS TX 77380
Robert W. Bourne	officer: SVP & Chief Commercial Officer	1400 16TH STREET, SUITE 310, DENVER CO 80202
Kristen S. Shults	officer: SVP & Chief Financial Officer	9950 WOODLOCH FOREST DR, SUITE 2800, THE WOODLANDS TX 77380
Frederick A. Forthuber	director	9950 WOODLOCH FOREST DR, SUITE 2800, THE WOODLANDS TX 77380
Anadarko Ush1 Corp	10 percent owner	5 GREENWAY PLAZA, SUITE 110, HOUSTON TX 77046
Anadarko Holding Co	10 percent owner	5 GREENWAY PLAZA, SUITE 110, HOUSTON TX 77046
Christopher B. Dial	officer: SVP, GC and Secretary	2103 CITYWEST BLVD., BUILDING 4, SUITE 800, HOUSTON TX 77042
Charles G. Griffie	officer: SVP, Ops and Engineering	1201 LAKE ROBBINS DR, THE WOODLANDS TX 77380
Catherine A. Green	officer: VP & Chief Accounting Officer	1201 LAKE ROBBINS DR, THE WOODLANDS TX 77380
Lisa A Stewart	director	EL PASO CORPORATION, 1001 LOUISIANA STREET, HOUSTON TX 77002
Craig W Collins	officer: SVP & Chief Operating Officer	15021 KATY FREEWAY, SUITE 400, HOUSTON TX 77094