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.
ProFrac Holding's Sloan Ratio for the quarter that ended in Sep. 2024 was -5.14%.
As of Sep. 2024, ProFrac Holding has a Sloan Ratio of -5.14%, indicating the company is in the safe zone and there is no funny business with accruals.
ProFrac Holding Sloan Ratio % Historical Data
The historical data trend for ProFrac Holding'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 ProFrac Holding's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, ProFrac Holding'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.
ProFrac Holding's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, ProFrac Holding's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where ProFrac Holding's Sloan Ratio % falls into.
ProFrac Holding 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.
ProFrac Holding's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
ProFrac Holding's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -97.9 (Dec. 2023 ) + 1.8 (Mar. 2024 ) + -66.7 (Jun. 2024 ) + -45.2 (Sep. 2024 ) = $-208 Mil.
ProFrac Holding's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 42.7 (Dec. 2023 ) + 79.1 (Mar. 2024 ) + 113.5 (Jun. 2024 ) + 98.2 (Sep. 2024 ) = $334 Mil.
ProFrac Holding's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -28.4 (Dec. 2023 ) + -53.3 (Mar. 2024 ) + -231.5 (Jun. 2024 ) + -67 (Sep. 2024 ) = $-380 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.
ProFrac Holding (NAS:ACDC) 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 Sep. 2024, ProFrac Holding has a Sloan Ratio of -5.14%, indicating the company is in the safe zone and there is no funny business with accruals.
ProFrac Holding Sloan Ratio % Related Terms
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ProFrac Holding Corp is engaged in providing hydraulic fracturing, completion services, and other complementary products and services to upstream oil and gas companies engaged in the exploration and production of North American unconventional oil and natural gas resources. Its operations are focused in West Texas, East Texas/Louisiana, South Texas, Oklahoma, Uinta, and Appalachian. The company operates in three segments: stimulation services, manufacturing, and proppant production. Stimulation services, which generate the majority of the revenue for the company operate a fleet of mobile hydraulic fracturing units and other auxiliary equipment that generates revenue by providing stimulation services.
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