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.
CSI Compressco LP's Sloan Ratio for the quarter that ended in Dec. 2023 was -2.94%.
As of Dec. 2023, CSI Compressco LP has a Sloan Ratio of -2.94%, indicating the company is in the safe zone and there is no funny business with accruals.
CSI Compressco LP Sloan Ratio % Historical Data
The historical data trend for CSI Compressco LP'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 CSI Compressco LP's Sloan Ratio %
For the Oil & Gas Equipment & Services subindustry, CSI Compressco 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.
CSI Compressco LP's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, CSI Compressco LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where CSI Compressco LP's Sloan Ratio % falls into.
CSI Compressco 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.
CSI Compressco LP's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
CSI Compressco LP's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was -2.613 (Mar. 2023 ) + -2.573 (Jun. 2023 ) + -0.947 (Sep. 2023 ) + -3.347 (Dec. 2023 ) = $-9.5 Mil.
CSI Compressco LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 19.854 (Mar. 2023 ) + 4.772 (Jun. 2023 ) + 35.162 (Sep. 2023 ) + 2.382 (Dec. 2023 ) = $62.2 Mil.
CSI Compressco LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -14.311 (Mar. 2023 ) + -7.644 (Jun. 2023 ) + -12.213 (Sep. 2023 ) + -17.291 (Dec. 2023 ) = $-51.5 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.
CSI Compressco LP (NAS:CCLP) 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, CSI Compressco LP has a Sloan Ratio of -2.94%, indicating the company is in the safe zone and there is no funny business with accruals.
CSI Compressco LP Sloan Ratio % Related Terms
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CSI Compressco LP (CSI Compressco LP) Business Description
CSI Compressco LP is a limited partnership operating in the U.S. The company is a provider of compression services and equipment for natural gas and oil production, gathering, transportation, processing, and storage. It sells standard and custom-designed compressor packages and oil field fluid pump systems and provides aftermarket services and compressor package parts and components manufactured by third-party suppliers. In addition, the company provides compression services and equipment to natural gas and oil exploration and production, midstream, and transmission companies. The majority of the company's revenue comes from the United States.
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