What is Plains All American Pipeline 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.
As of Sep. 2024, Plains All American Pipeline LP has a Sloan Ratio of -0.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Plains All American Pipeline LP Sloan Ratio % Historical Data
* 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.
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Plains All American Pipeline LP Sloan Ratio % Chart
Competitive Comparison of Plains All American Pipeline LP's Sloan Ratio %
For the Oil & Gas Midstream subindustry, Plains All American Pipeline 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.
Plains All American Pipeline LP's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Plains All American Pipeline LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Plains All American Pipeline LP's Sloan Ratio % falls into.
Plains All American Pipeline 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.
Plains All American Pipeline LP's Net Income for the trailing twelve months (TTM) ended in Sep. 2024 was 312 (Dec. 2023 ) + 266 (Mar. 2024 ) + 250 (Jun. 2024 ) + 220 (Sep. 2024 ) = $1,048 Mil.
Plains All American Pipeline LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Sep. 2024 was 1011 (Dec. 2023 ) + 419 (Mar. 2024 ) + 653 (Jun. 2024 ) + 691 (Sep. 2024 ) = $2,774 Mil.
Plains All American Pipeline LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Sep. 2024 was -258 (Dec. 2023 ) + -261 (Mar. 2024 ) + -157 (Jun. 2024 ) + -822 (Sep. 2024 ) = $-1,498 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.
Plains All American Pipeline LP (NAS:PAA) 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, Plains All American Pipeline LP has a Sloan Ratio of -0.84%, indicating the company is in the safe zone and there is no funny business with accruals.
Plains All American Pipeline LP Sloan Ratio % Related Terms
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Plains All American Pipeline LP Business Description
Plains All American provides transportation, storage, processing, fractionation, and marketing services for crude oil, refined products, natural gas liquids, liquefied petroleum gas, and related products. Plains' assets span the United States and Alberta, Canada, but are heavily concentrated in the Permian Basin.
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