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.
National Refinery's Sloan Ratio for the quarter that ended in Sep. 2024 was -11.59%.
As of Sep. 2024, National Refinery has a Sloan Ratio of -11.59%, indicating there is a warning stage of accrual build up.
National Refinery Sloan Ratio % Historical Data
The historical data trend for National Refinery'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 National Refinery's Sloan Ratio %
For the Oil & Gas Refining & Marketing subindustry, National Refinery'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.
National Refinery's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, National Refinery's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where National Refinery's Sloan Ratio % falls into.
National Refinery 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.
National Refinery's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
National Refinery's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was -7855.832 (Dec. 2023 ) + -2869.624 (Mar. 2024 ) + -8267.461 (Jun. 2024 ) + -7236.585 (Sep. 2024 ) = ₨-26,230 Mil.
National Refinery's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was -9672.052 (Dec. 2023 ) + -635.678 (Mar. 2024 ) + -11329.569 (Jun. 2024 ) + 7836.058 (Sep. 2024 ) = ₨-13,801 Mil.
National Refinery's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -440.897 (Dec. 2023 ) + -121.897 (Mar. 2024 ) + -176.309 (Jun. 2024 ) + -202.63 (Sep. 2024 ) = ₨-942 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.
National Refinery (KAR:NRL) 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, National Refinery has a Sloan Ratio of -11.59%, indicating there is a warning stage of accrual build up.
National Refinery Sloan Ratio % Related Terms
Thank you for viewing the detailed overview of National Refinery's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.
National Refinery Ltd is a Pakistan-based company engaged in manufacturing and supplying fuel products, lubes, BTX, asphalts and specialty products for domestic consumption and export. It is also involved in the crude oil refining business. The company operates through two segments namely Fuel and Lube. The Fuel segment, which is the key revenue driver, is engaged in the production of high-speed diesel, naphtha, motor gasoline, liquefied petroleum gas, jet fuels, and furnace oil. The Lube segment produces multiple grades of lube base oils, bitumen, waxes and rubber process oil and some quantities of other fuel products. It derives maximum revenue from Fuel Segment.
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