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.
Matador Resources Co's Sloan Ratio for the quarter that ended in Mar. 2024 was 27.84%.
Warning Sign:
When sloan ratio (28.33)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.
As of Mar. 2024, Matador Resources Co has a Sloan Ratio of 27.84%, indicating earnings are more likely to be made up of accruals.
Matador Resources Co Sloan Ratio % Historical Data
The historical data trend for Matador Resources Co'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 Matador Resources Co's Sloan Ratio %
For the Oil & Gas E&P subindustry, Matador Resources Co'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.
Matador Resources Co's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Matador Resources Co's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Matador Resources Co's Sloan Ratio % falls into.
Matador Resources Co 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.
Matador Resources Co's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Matador Resources Co's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 164.666 (Jun. 2023 ) + 263.739 (Sep. 2023 ) + 254.539 (Dec. 2023 ) + 193.729 (Mar. 2024 ) = $877 Mil.
Matador Resources Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 449.011 (Jun. 2023 ) + 460.97 (Sep. 2023 ) + 618.347 (Dec. 2023 ) + 468.562 (Mar. 2024 ) = $1,997 Mil.
Matador Resources Co's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was -1895.267 (Jun. 2023 ) + -423.591 (Sep. 2023 ) + -548.868 (Dec. 2023 ) + -543.315 (Mar. 2024 ) = $-3,411 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.
Matador Resources Co (NYSE:MTDR) 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 Mar. 2024, Matador Resources Co has a Sloan Ratio of 27.84%, indicating earnings are more likely to be made up of accruals.
Matador Resources Co Sloan Ratio % Related Terms
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Matador Resources Co (Matador Resources Co) Business Description
Matador Resources Co is an independent energy company engaged in the exploration, development, production, and acquisition of oil and natural gas resources. The majority of the company's assets are located in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Along with maintaining a portfolio of oil and natural gas properties, Matador works to identify and develop midstream opportunities that support and enhance its exploration and development business. The company often uses advanced formation evaluation, 3-D seismic technology, horizontal drilling, and hydraulic fracturing technology to enhance the development of the basins in which it operates.
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