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 Dec. 2023, Cathedral Energy Services has a Sloan Ratio of 2.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Cathedral Energy Services 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.
Competitive Comparison of Cathedral Energy Services's Sloan Ratio %
For the Oil & Gas Drilling subindustry, Cathedral Energy Services'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.
Cathedral Energy Services's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Cathedral Energy Services's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Cathedral Energy Services's Sloan Ratio % falls into.
Cathedral Energy Services 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.
Cathedral Energy Services's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Cathedral Energy Services's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 0.58 (Mar. 2023 ) + 1.818 (Jun. 2023 ) + 4.176 (Sep. 2023 ) + 1.317 (Dec. 2023 ) = $7.9 Mil.
Cathedral Energy Services's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 17.479 (Mar. 2023 ) + 8.454 (Jun. 2023 ) + 6.746 (Sep. 2023 ) + 12.365 (Dec. 2023 ) = $45.0 Mil.
Cathedral Energy Services's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -7.476 (Mar. 2023 ) + -3.277 (Jun. 2023 ) + -28.625 (Sep. 2023 ) + -5.597 (Dec. 2023 ) = $-45.0 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.
Cathedral Energy Services (OTCPK:CETEF) 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, Cathedral Energy Services has a Sloan Ratio of 2.60%, indicating the company is in the safe zone and there is no funny business with accruals.
Cathedral Energy Services Sloan Ratio % Related Terms
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Cathedral Energy Services (Cathedral Energy Services) Business Description
Cathedral Energy Services Ltd is a Canadian-based company that is involved and engaged in the business of providing directional drilling services to oil and natural gas companies in western Canada and the United States. The Directional Drilling division provides horizontal, directional, and underbalanced drilling services. Geographically the company caters its services to Canada and the United States, of which a majority of the revenue is derived from United States.
Cathedral Energy Services (Cathedral Energy Services) Headlines
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