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 Reservoir Link Energy Bhd's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, Reservoir Link Energy Bhd'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.
Reservoir Link Energy Bhd's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Reservoir Link Energy Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Reservoir Link Energy Bhd's Sloan Ratio % falls into.
Reservoir Link Energy Bhd 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.
Reservoir Link Energy Bhd's Sloan Ratio for the fiscal year that ended in Jun. 2024 is calculated as
Reservoir Link Energy Bhd's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was -1.881 (Mar. 2024 ) + -0.512 (Jun. 2024 ) + 0.684 (Sep. 2024 ) + 83.953 (Dec. 2024 ) = RM82.2 Mil.
Reservoir Link Energy Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was -12.315 (Mar. 2024 ) + 12.205 (Jun. 2024 ) + 0.521 (Sep. 2024 ) + -0.37 (Dec. 2024 ) = RM0.0 Mil.
Reservoir Link Energy Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was 3.117 (Mar. 2024 ) + -12.989 (Jun. 2024 ) + -2.378 (Sep. 2024 ) + -0.043 (Dec. 2024 ) = RM-12.3 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.
Reservoir Link Energy Bhd (XKLS:0219) 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 Dec. 2024, Reservoir Link Energy Bhd has a Sloan Ratio of 36.90%, indicating there is a warning stage of accrual build up.
Reservoir Link Energy Bhd Sloan Ratio % Related Terms
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Reservoir Link Energy Bhd is a provider of well services for Oil & Gas Operators and Renewable Energy industry that supports upstream segments. The company provides services for well leak repair, perforation, testing, wash and cement, wireline services, production enhancement, and other services comprise of supplying oilfield products, equipment and technical personnel, and providing construction and consultancy services. The company has three business segments as oil and gas segment; Renewable energy segment and other services. It derives majority of its revenue from Renewable energy Segment.
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