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.
Petronas Gas Bhd's Sloan Ratio for the quarter that ended in Dec. 2023 was 1.27%.
As of Dec. 2023, Petronas Gas Bhd has a Sloan Ratio of 1.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Petronas Gas Bhd Sloan Ratio % Historical Data
The historical data trend for Petronas Gas Bhd'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 Petronas Gas Bhd's Sloan Ratio %
For the Utilities - Regulated Gas subindustry, Petronas Gas 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.
Petronas Gas Bhd's Sloan Ratio % Distribution in the Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Petronas Gas Bhd's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Petronas Gas Bhd's Sloan Ratio % falls into.
Petronas Gas 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.
Petronas Gas Bhd's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Petronas Gas Bhd's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 424.177 (Mar. 2023 ) + 485.373 (Jun. 2023 ) + 468.459 (Sep. 2023 ) + 441.591 (Dec. 2023 ) = RM1,820 Mil.
Petronas Gas Bhd's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 588.061 (Mar. 2023 ) + 741.66 (Jun. 2023 ) + 909.85 (Sep. 2023 ) + 765.516 (Dec. 2023 ) = RM3,005 Mil.
Petronas Gas Bhd's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -180.18 (Mar. 2023 ) + -148.019 (Jun. 2023 ) + -345.964 (Sep. 2023 ) + -756.131 (Dec. 2023 ) = RM-1,430 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.
Petronas Gas Bhd (XKLS:6033) 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. 2023, Petronas Gas Bhd has a Sloan Ratio of 1.27%, indicating the company is in the safe zone and there is no funny business with accruals.
Petronas Gas Bhd Sloan Ratio % Related Terms
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Petronas Gas Bhd is a Malaysian gas infrastructure and utilities company of which Malaysia's nationalized oil corporation, PETRONAS, holds a majority interest. Petronas Gas segments its primary operations into Gas Processing, Gas Transportation, Utilities, and Regasification businesses. While each of these contributes significantly to the company's total revenue, its Utilities and Gas Processing units combine to generate the majority. In Gas Processing, Petronas Gas receives processing fees under multi-year contracts by processing natural gas piped offshore for its parent company, PETRONAS. The Gas Transportation business encompasses the transmission of offshore natural gas through pipelines to customers in Malaysia and Singapore under multi-year agreements with PETRONAS.
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