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.
Sunoco LP's Sloan Ratio for the quarter that ended in Dec. 2023 was -0.01%.
As of Dec. 2023, Sunoco LP has a Sloan Ratio of -0.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Sunoco LP Sloan Ratio % Historical Data
The historical data trend for Sunoco 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.
For the Oil & Gas Refining & Marketing subindustry, Sunoco 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.
Sunoco LP Sloan Ratio % Distribution
For the Oil & Gas industry and Energy sector, Sunoco LP's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where Sunoco LP's Sloan Ratio % falls into.
Sunoco 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.
Sunoco LP's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as
Sunoco LP's Net Income for the trailing twelve months (TTM) ended in Dec. 2023 was 120 (Mar. 2023 ) + 66 (Jun. 2023 ) + 251 (Sep. 2023 ) + -126 (Dec. 2023 ) = $311 Mil.
Sunoco LP's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2023 was 326 (Mar. 2023 ) + 91 (Jun. 2023 ) + -1 (Sep. 2023 ) + 184 (Dec. 2023 ) = $600 Mil.
Sunoco LP's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2023 was -31 (Mar. 2023 ) + -139 (Jun. 2023 ) + -43 (Sep. 2023 ) + -75 (Dec. 2023 ) = $-288 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.
Sunoco LP (NYSE:SUN) 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, Sunoco LP has a Sloan Ratio of -0.01%, indicating the company is in the safe zone and there is no funny business with accruals.
Sunoco LP Sloan Ratio % Related Terms
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Sunoco LP is a Delaware limited partnership formed in June 2012 by Susser Holdings Corporation or SUSS. In September 2012, the Company completed its initial public offering. The Company, along with its wholly owned subsidiary, is an independent motor fuel distributor by gallons in Texas, and among the distributors of Valero and Chevron branded motor fuel in the United States. The Company also receives rental income from real estate that it leases or subleases. SUSS operated approximately 580 retail convenience stores under its proprietary Stripes convenience store brand at year-end, mainly in growing Texas markets. Stripes is an independent chain of convenience stores in Texas based on store count and retail motor fuel volumes sold. Its business is integral to the success of SUSS' retail operations, and SUSS purchases substantially all of its motor fuel from the Company. In addition to distributing motor fuel, it also distributes other petroleum products such as propane and lube oil, and receives rental income from real estate that it leases or subleases. The Company purchases motor fuel mainly from independent refiners and oil companies and distributes it throughout Texas and in Louisiana, New Mexico and Oklahoma. The Company competes mainly with other independent motor fuel distributors. The Company is subject to various federal, state and local environmental laws and regulations, including those relating to underground storage tanks; the release or discharge of hazardous materials into the air, water and soil; the generation, storage, handling, use, transportation and disposal of regulated materials; the exposure of persons to regulated materials; and the remediation of contaminated soil and groundwater.
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