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.
Athlon Energy's Sloan Ratio for the quarter that ended in Sep. 2014 was 54.63%.
As of Sep. 2014, Athlon Energy has a Sloan Ratio of 54.63%, indicating there is a warning stage of accrual build up.
Athlon Energy Sloan Ratio % Historical Data
The historical data trend for Athlon 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 Athlon Energy's Sloan Ratio %
For the Oil & Gas E&P subindustry, Athlon 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.
Athlon Energy's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Athlon Energy's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Athlon Energy's Sloan Ratio % falls into.
Athlon 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.
Athlon Energy's Sloan Ratio for the fiscal year that ended in Dec. 2013 is calculated as
Athlon Energy's Net Income for the trailing twelve months (TTM) ended in Sep. 2014 was 16.064 (Dec. 2013 ) + 13.574 (Mar. 2014 ) + 5.809 (Jun. 2014 ) + 56.41 (Sep. 2014 ) = €91.9 Mil.
Athlon Energy's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2014 was 34.209 (Dec. 2013 ) + 49.691 (Mar. 2014 ) + 62.495 (Jun. 2014 ) + 90.038 (Sep. 2014 ) = €236.4 Mil.
Athlon Energy's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2014 was -94.712 (Dec. 2013 ) + -162.849 (Mar. 2014 ) + -740.695 (Jun. 2014 ) + -454.94 (Sep. 2014 ) = €-1,453.2 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.
Athlon Energy (FRA:28A) 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. 2014, Athlon Energy has a Sloan Ratio of 54.63%, indicating there is a warning stage of accrual build up.
Athlon Energy Sloan Ratio % Related Terms
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Athlon Energy Inc was founded in August 2010 and formed on April 1, 2013 as a Delaware corporation. The Company is an independent exploration and production company engaged in the acquisition, development, and exploitation of unconventional oil and liquids-rich natural gas reserves in the Permian Basin. The Permian Basin spans portions of Texas and New Mexico and is composed of three primary sub-basins: the Delaware Basin, the Central Basin Platform, and the Midland Basin. All of the properties are located in the Midland Basin. The Company's drilling activity is primarily engaged in the low-risk vertical development of stacked pay zones, including the Clearfork, Spraberry, Wolfcamp, Cline, Strawn, Atoka, and Mississippian formations, referred to as the Wolfberry play, and horizontal development of the Wolfcamp. As of December 31, 2013, it had identified 2,232 gross vertical drilling locations on 40-acre spacing and an additional 2,616 gross vertical drilling locations on 20-acre spacing. Only 659 gross of these potential vertical drilling locations were booked as proved undeveloped reserves. As of December 31, 2013, it had also identified 1,065 gross horizontal drilling locations targeting Wolfcamp A, Wolfcamp B, Wolfcamp C, and Cline intervals, which comprise 327 gross, 362 gross, 136 gross, and 240 gross locations, respectively. Its acreage position was 127,840 gross acres at December 31, 2013. As of December 31, 2013, it had 127.3 MMBOE of proved reserves, comprised of 71.2 MMBbls of oil, 30.7 MMBbls of NGLs, and 152.2 Bcf of natural gas. The Company's facilities located at well locations include field gathering systems, storage tank batteries, saltwater disposal systems, oil/gas/water separation equipment, and pumping units. It owns 10 saltwater disposal systems with over 45,700 barrels of water per day capacity and access to over 144 fresh water supply wells throughout its acreage.
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