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.
Origin Energy's Sloan Ratio for the quarter that ended in Dec. 2023 was 3.40%.
As of Dec. 2023, Origin Energy has a Sloan Ratio of 3.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Origin Energy Sloan Ratio % Historical Data
The historical data trend for Origin Energy'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 Origin Energy's Sloan Ratio %
For the Oil & Gas Integrated subindustry, Origin Energy'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.
Origin Energy's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Origin Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Origin Energy's Sloan Ratio % falls into.
Origin Energy 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.
Origin Energy's Sloan Ratio for the fiscal year that ended in Jun. 2023 is calculated as
For company reported semi-annually, GuruFocus uses latest two semi-annual data as the TTM data.
Origin Energy's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 654 (Jun. 2023 ) + 995 (Dec. 2023 ) = A$1,649 Mil.
Origin Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 153 (Jun. 2023 ) + -212 (Dec. 2023 ) = A$-59 Mil.
Origin Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was 783 (Jun. 2023 ) + 279 (Dec. 2023 ) = A$1,062 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.
Origin Energy (ASX:ORG) 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, Origin Energy has a Sloan Ratio of 3.40%, indicating the company is in the safe zone and there is no funny business with accruals.
Origin Energy Sloan Ratio % Related Terms
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Origin Energy is a major vertically integrated Australian energy utility. Its energy retailing business is the largest in Australia, with about 4 million customers and a 33% market share. Its portfolio of base-load, intermediate, and peaking electricity plants is one of the largest in the national electricity market, with a capacity of 6,000 megawatts. Origin also operates and owns 27.5% of Australia Pacific LNG, which owns large coal seam gas fields and LNG export facilities in Queensland.
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