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 International Petroleum's Sloan Ratio %
For the Oil & Gas E&P subindustry, International Petroleum'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.
International Petroleum's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, International Petroleum's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where International Petroleum's Sloan Ratio % falls into.
International Petroleum 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.
International Petroleum's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
International Petroleum's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 344.794 (Jun. 2023 ) + 794.481 (Sep. 2023 ) + 304.692 (Dec. 2023 ) + 350.986 (Mar. 2024 ) = kr1,795 Mil.
International Petroleum's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 768.451 (Jun. 2023 ) + 1178.891 (Sep. 2023 ) + 1251.366 (Dec. 2023 ) + 252.776 (Mar. 2024 ) = kr3,451 Mil.
International Petroleum's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -638.672 (Jun. 2023 ) + -700.26 (Sep. 2023 ) + -1255.51 (Dec. 2023 ) + -1304.65 (Mar. 2024 ) = kr-3,899 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.
International Petroleum (OSTO:IPCO) 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 Mar. 2024, International Petroleum has a Sloan Ratio of 10.99%, indicating there is a warning stage of accrual build up.
International Petroleum Sloan Ratio % Related Terms
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International Petroleum (OSTO:IPCO) Business Description
International Petroleum Corp is an international oil and gas exploration and production company. It is engaged in the exploration, development, and production of oil and gas. Geographically, the company holds a portfolio of oil and gas production assets and development projects in Canada, Malaysia, and France. It is based in Canada and derives revenue from the sales of gas, crude oil, and natural gas liquids, of which key revenue is derived from the sales of crude oil.
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