What is Kimbell Royalty Partners LP Sloan Ratio %?
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.
* 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 Kimbell Royalty Partners LP's Sloan Ratio %
For the Oil & Gas E&P subindustry, Kimbell Royalty Partners LP'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.
Kimbell Royalty Partners LP's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Kimbell Royalty Partners LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Kimbell Royalty Partners LP's Sloan Ratio % falls into.
Kimbell Royalty Partners LP 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.
Kimbell Royalty Partners LP's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 13.47 (Dec. 2023 ) + 8.425 (Mar. 2024 ) + 13.653 (Jun. 2024 ) + 22.672 (Sep. 2024 ) = $58.2 Mil.
Kimbell Royalty Partners LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 59.309 (Dec. 2023 ) + 69.046 (Mar. 2024 ) + 62.883 (Jun. 2024 ) + 62.417 (Sep. 2024 ) = $253.7 Mil.
Kimbell Royalty Partners LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -0.564 (Dec. 2023 ) + -0.091 (Mar. 2024 ) + -0.04 (Jun. 2024 ) + -0.045 (Sep. 2024 ) = $-0.7 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.
Kimbell Royalty Partners LP (NYSE:KRP) 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, Kimbell Royalty Partners LP has a Sloan Ratio of -16.03%, indicating there is a warning stage of accrual build up.
Kimbell Royalty Partners LP Sloan Ratio % Related Terms
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Kimbell Royalty Partners LP owns and acquires mineral and royalty interests in oil and natural gas properties throughout the United States. The company's basins and producing regions include areas of interest in the Permian Basin, Mid-Continent, Terryville/Cotton Valley/Haynesville, Appalachian Basin, Eagle Ford, Bakken/Williston Basin, and DJ Basin/Rockies/Niobrara. Its revenues are derived from royalty payments received from operators based on the sale of oil, natural gas, and NGL production, as well as the sale of NGLs that are extracted from natural gas during processing.
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