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.
Gastar Exploration's Sloan Ratio for the quarter that ended in Sep. 2018 was -25.32%.
As of Sep. 2018, Gastar Exploration has a Sloan Ratio of -25.32%, indicating there is a warning stage of accrual build up.
Gastar Exploration Sloan Ratio % Historical Data
The historical data trend for Gastar Exploration'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 Gastar Exploration's Sloan Ratio %
For the Oil & Gas E&P subindustry, Gastar Exploration'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.
Gastar Exploration's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Gastar Exploration's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Gastar Exploration's Sloan Ratio % falls into.
Gastar Exploration 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.
Gastar Exploration's Sloan Ratio for the fiscal year that ended in Dec. 2017 is calculated as
Gastar Exploration's Net Income for the trailing twelve months (TTM) ended in Sep. 2018 was -12.979 (Dec. 2017 ) + -15.511 (Mar. 2018 ) + -35.822 (Jun. 2018 ) + -17.527 (Sep. 2018 ) = $-81.84 Mil.
Gastar Exploration's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2018 was 10.926 (Dec. 2017 ) + 32.238 (Mar. 2018 ) + 7.013 (Jun. 2018 ) + -1.733 (Sep. 2018 ) = $48.44 Mil.
Gastar Exploration's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2018 was -26.866 (Dec. 2017 ) + 55.276 (Mar. 2018 ) + -43.254 (Jun. 2018 ) + -30.55 (Sep. 2018 ) = $-45.39 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.
Gastar Exploration (OTCPK:GSPAQ.PFD) 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. 2018, Gastar Exploration has a Sloan Ratio of -25.32%, indicating there is a warning stage of accrual build up.
Gastar Exploration Sloan Ratio % Related Terms
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Gastar Exploration (Gastar Exploration) Business Description
Gastar Exploration Inc is Mid-Continent independent energy company which is engaged in the exploration, development, and production of oil, condensate, natural gas and NGLs (natural gas liquids). The principal business activities of the company include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves, such as shale resource plays. The company's exploration properties consist primarily of oil and natural gas leases in the Mid-Continent area of the U.S. in Oklahoma. Gastar operates through the single segment being Exploration and production of oil, condensate, natural gas.
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