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 Jun. 2016, Rose Rock Midstream LP has a Sloan Ratio of 2.62%, indicating the company is in the safe zone and there is no funny business with accruals.
Rose Rock Midstream LP 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 Rose Rock Midstream LP's Sloan Ratio %
For the Oil & Gas Integrated subindustry, Rose Rock Midstream 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.
Rose Rock Midstream LP's Sloan Ratio % Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Rose Rock Midstream LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Rose Rock Midstream LP's Sloan Ratio % falls into.
Rose Rock Midstream 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.
Rose Rock Midstream LP's Sloan Ratio for the fiscal year that ended in Dec. 2015 is calculated as
Rose Rock Midstream LP's Net Income for the trailing twelve months (TTM) ended in Jun. 2016 was 16.421 (Sep. 2015 ) + 1.584 (Dec. 2015 ) + 26.468 (Mar. 2016 ) + 9.922 (Jun. 2016 ) = $54.4 Mil.
Rose Rock Midstream LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2016 was 32.431 (Sep. 2015 ) + 30.549 (Dec. 2015 ) + 14.53 (Mar. 2016 ) + 14.08 (Jun. 2016 ) = $91.6 Mil.
Rose Rock Midstream LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2016 was -26.965 (Sep. 2015 ) + -35.255 (Dec. 2015 ) + -6.467 (Mar. 2016 ) + -3.578 (Jun. 2016 ) = $-72.3 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.
Rose Rock Midstream LP (NYSE:RRMS) 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 Jun. 2016, Rose Rock Midstream LP has a Sloan Ratio of 2.62%, indicating the company is in the safe zone and there is no funny business with accruals.
Rose Rock Midstream LP Sloan Ratio % Related Terms
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Rose Rock Midstream LP (Rose Rock Midstream LP) Business Description
Rose Rock Midstream LP is a Delaware limited partnership formed in 2011. The Company is engaged in the business of crude oil gathering, transportation, storage, distribution and marketing in Colorado, Kansas, Minnesota, Montana, North Dakota, Ohio, Oklahoma, Pennsylvania, Texas and Wyoming. We operate in the Bakken Shale in North Dakota and Montana, the Denver-Julesburg Basin ("DJ Basin") and the Niobrara Shale in the Rocky Mountain region, and the Granite Wash and Mississippi Lime Play in the Mid-Continent region. The Company's operating business segments are Transportation, Facilities, and Supply & Logistics. The Transportation segment operates crude oil pipelines and truck transportation businesses. The Facilities segment operates crude oil storage and terminal businesses. The Supply and Logistics segment operates a crude oil marketing business which utilizes our Transportation and Facilities assets for marketing purposes. Its competitors include Cushing include Blueknight Energy Partners, L.P., Enbridge Energy Partners, L.P., Enterprise Products Partners L.P., Magellan Midstream Partners, L.P. and Plains All American Pipeline, L.P. The Company' operations are subject to extensive regulation.
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